Toronto-based Schneider Power Inc. has entered into a binding agreement to purchase Ontario-based Grand Valley Wind Farms Inc. from its parent company, EarthFirst Canada Inc., in partnership with Lands End Corp., the original developer of the project.
The completion of the all-cash, C$800,000 transaction is subject to, among other customary closing conditions, approval by the Court of Queen's Bench of Alberta pursuant to EarthFirst's current proceedings under the Companies Creditors' Arrangement Act. Assuming court approval is obtained, the completion of the transaction is expected to occur on or around May 27.
The Grand Valley Wind Farms hold three Ontario renewable energy standard offer program contracts for a total of 22 MW of fully permitted capacity, with an additional 28 MW of capacity anticipated to be developed under a proposed feed-in tariff program. Schneider Power will take a 66% ownership in the joint venture, with Lands End Corp. retaining a 34% interest.
The company also announced that it has received conditional approval from the TSX Venture Exchange for a non-brokered private placement of up to 10 million units at a price of C$0.11 per unit.
Gross proceeds from the offering are expected to be used to fund a portion of the Grand Valley acquisition and for ongoing development of the company's portfolio of renewable energy projects.
SOURCE: Schneider Power Inc.