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Green Impact Partners Signs Definitive Agreement to Sell Its Water and Recycling Facilities and Announces Lead Equity Partner Agreement for the Future Energy Park
Calgary, Alberta--(Newsfile Corp. - May 21, 2025) - Green Impact Partners Inc. (TSXV: GIP) ("GIP"...
About this update from Green Impact Partners Inc
[{"type":"text","content":"Green Impact Partners Signs Definitive Agreement to Sell Its Water and Recycling Facilities and Announces Lead Equity Partner Agreement for the Future Energy ParkCalgary, Alberta--(Newsfile Corp. - May 21, 2025) - Green Impact Partners Inc. (TSXV: GIP) (\"GIP\" or the \"Company\") has entered into a definitive agreement (the \"Agreement\") with a private, arm's-length party (the \"Purchaser\") for the sale of its water, waste treatment, and recycling facilities located in Alberta and Saskatchewan (the \"Transaction\") for proceeds of $53.25 million (the \"Purchase Price\") subject to working capital adjustments. The Purchase Price shall be paid with $34.5 million in cash on close, and an $18.75 million Promissory Note (the \"Note\"). The Transaction is expected to close on or before June 30, 2025, and is conditional on the Purchaser obtaining financing and the satisfaction of other negotiated closing conditions, including receipt of final approval from the TSX Venture Exchange.The TSX Venture Exchange has conditionally approved the Transaction subject to customary conditions for a transaction of this nature. Proceeds from the Transaction will be used to repay the Company's revolving credit facility (the \"Credit Facility\") in full. In addition to the Purchase Price, the Purchaser has paid GIP an exclusivity fee of $500,000 (the \"Exclusivity Fee\") in respect of the Transaction until June 6, 2025.Transaction DetailsPayments are due monthly under the Note, which is non-interest bearing prior to maturity, commencing on the first day of the first month following close for a period of 24 months.The Purchaser has the option to prepay the Note prior to its maturity for a discount if prepayment occurs within three to 12 months of closing.The Exclusivity Fee is repayable by the Company under certain limited circumstances.If the Agreement is terminated in certain circumstances, the Purchaser is obligated to pay GIP a termination fee of $5 million. Joint and several personal guarantees have been delivered by certain individuals associated with the Purchaser to guarantee the Purchaser's obligations under the Note and the termination fee.The Company has been advised on the Transaction by a financial advisor and legal counsel of national standing.As the Transaction is conditional upon the Purchaser obtaining financing to pay the cash portio...