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Green Impact Partners Provides Update on GreenGas Colorado Investment Tax Credits and Announces Additional Insider Investment
Calgary, Alberta--(Newsfile Corp. - March 7, 2024) - Green Impact Partners Inc. (TSXV: GIP) ("GIP...
About this update from Green Impact Partners Inc
[{"type":"text","content":"Green Impact Partners Provides Update on GreenGas Colorado Investment Tax Credits and Announces Additional Insider InvestmentCalgary, Alberta--(Newsfile Corp. - March 7, 2024) - Green Impact Partners Inc. (TSXV: GIP) (\"GIP\" or the \"Company\") is pleased to announce that the Company is working through the final closing conditions for the Investment Tax Credits (\"ITCs\") for GreenGas Colorado, which is expected to close in the coming weeks. As previously disclosed, upon closing of the Purchase and Sale Agreement (\"PSA\") for the ITCs, GIP will receive approximately US$15.5 million of net proceeds. As a result of a delay in closing the GreenGas Colorado ITC sale, GIP has entered into an agreement (the \"Option Agreement\") with various directors of the Company (the \"Optionees\"), wherein the Optionees have agreed to fund an amount of $6,000,000 to GIP, to provide additional liquidity to GIP until closing of the GreenGas Colorado ITC sale. In exchange, GIP has granted the Optionees an option to purchase certain ITCs that the Company may receive from future renewable natural gas projects (excluding GreenGas Colorado) (the \"Option\"). \"We are grateful for the support from our senior management and Board of Directors as we continue to progress the development of our portfolio of opportunities, notably our flagship project, the Future Energy Park,\" said Jesse Douglas, Chief Executive Officer. \"Our team is working diligently towards financial close of the Future Energy Park and advancing additional projects in our development portfolio.\"Pursuant to the Option Agreement, the Optionees shall have the right, for a period of five years, to purchase the ITCs from the Company. During the term of the Option Agreement, the Company may, at its sole option, repurchase the Option from the Optionees by paying all amounts previously funded to the Company by the Optionees along with interest accrued at a rate of 1.25% per month. The Option Agreement constitutes a \"related party transaction\" of GIP, within the meaning of Multilateral Instrument 61-101 - Protections of Minority Security Holders in Special Transactions (\"MI 61-101\") as the individuals entering into the Option Agreement are directors of the Company. The Company determined that the transaction is exempt from the formal valuation and minority approval requirements of MI 61-10...