Independent resource company Canadian Imperial Venture Corp. (CIVC) has entered into a letter of intent (LOI) to acquire Beothuk Energy Inc. (BEI), developer of a 180 MW offshore wind project in Canada. Under the terms of the LOI, CIVC will issue one common share for every issued and outstanding share of BEI, up to a maximum of 62 million common shares.
Over the last several years, BEI has been developing an offshore wind project proposed in St. George's Bay, Newfoundland and Labrador (NL). The company says it has been carefully courting potential partners and believes this transaction is exactly the impetus required to move its plans into high gear.
‘This agreement will provide BEI access to the public markets and is another big step forward in our business plan,’ comments BEI CEO Kirby Mercer, adding that the deal is a "win-win" for both companies.
Gerard Edwards, CEO of CIVC, says, "CIVC is delighted with the opportunities this deal offers. It will move CIVC into the highly profitable emerging North American green energy sector. It will balance the company's business portfolio and provides our shareholders the opportunity to participate in this exciting multibillion-dollar North American growth industry."
CIVC says a merger agreement is subject to various approvals, including acceptance by the TSX-Venture Exchange. The company expects completion to occur on or about Nov. 1.