Business
CastleCap Announces Letter of Intent and Intention to Complete Its Qualifying Transaction
CALGARY, AB / ACCESSWIRE / June 13, 2019 / CastleCap Capital Inc. ( TSX-V: CSTL.P ) (" Castl...
About this update from Castlecap Capital, Inc.
[{"type":"text","content":"CastleCap Announces Letter of Intent and Intention to Complete Its Qualifying TransactionCALGARY, AB / ACCESSWIRE / June 13, 2019 / CastleCap Capital Inc. (TSX-V: CSTL.P) (\"CastleCap\" or the \"Corporation\") is pleased to announce that it has entered into a non-binding letter of intent (the \"Letter of Intent\") dated June 11, 2019 with Plexus Technology Corp. (\"Plexus\") which outlines the general terms and conditions of a proposed transaction (the \"Proposed Transaction\") that will result in CastleCap acquiring all of the issued and outstanding common shares (the \"Plexus Shares\") and other securities of Plexus.The Proposed Transaction is currently expected to be completed by way of a three-cornered amalgamation or other similar transaction between CastleCap and Plexus which will result in Plexus becoming a wholly-owned subsidiary of CastleCap.Overview of PlexusPlexus is incorporated in the Province of Alberta and is engaged in the business of utilizing local natural gas to generate electricity for various wholly owned enterprises. Plexus owns generation equipment to create electricity using Alberta's low-cost natural gas. The electricity will be sold to third parties, through multi-year Power Purchase Agreements (PPA's). A portion of the remaining generated electricity will be used to power large scale datacenters, blockchain miners, cannabis growers and greenhouse modules. Plexus enjoys a unique competitive advantage as stakeholder relationships have led to partnerships with energy producers that improve production net-backs for Plexus partners and provide wholesale priced electricity to off-take clients and to Plexus wholly owned enterprises.Following the Closing and completion of the Plexus Financing (as defined below) and Ancillary Acquisitions (as defined below), Plexus is anticipating that it will acquire substantial electrical capacity and will be one of North America's lowest marginal cost electrical providers servicing large scale datacenters, blockchain miners, cannabis growers, greenhouse modules and other various industrial loads clients.The Proposed TransactionThe Letter of Intent is to be superseded by a definitive agreement (the \"Definitive Agreement\") between CastleCap and Plexus with such agreement to include representations, warranties, covenants and conditions typical for a transaction of this nature...