Business
Finavera Wind Energy finalizes terms for sale of two wind projects to Pattern Energy for $28 Million
VANCOUVER, April 29, 2013 /CNW/ - Finavera Wind Energy Inc. ('Finavera Wind Energy', 'Fina...
About this update from Solar Alliance Energy Inc.
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, April 29, 2013 /CNW/ - Finavera Wind Energy Inc. ('Finavera Wind Energy', 'Finavera' or the\n 'Company') (TSX-V: FVR) is pleased to announce the completion of a Purchase and\n Sale Agreement with Pattern Renewable Holdings Canada ULC, a subsidiary\n of Pattern Energy Group LP ('Pattern') following discussions with BC\n Hydro and various government agencies.  Pattern Energy is a large,\n independent power company operating 1,155MW of wind energy projects in\n Canada, the United States and Chile.  Pattern and Finavera have\n prioritized the purchase by Pattern of the Company's Tumbler Ridge and\n Meikle Wind Energy Projects for gross cash consideration of up to $28\n million subject to certain conditions.  Pattern will retain an option\n for two years from closing of this transaction to purchase the Wildmare\n and Bullmoose Wind Energy Projects on similar terms.  The Transaction\n is subject to Shareholder Approval and third party consents.\n\n\nFinavera CEO Jason Bak states, \"This transaction provides a strong\n return on capital invested in these projects and provides a platform\n for the next stage of growth for Finavera Wind Energy.  Finavera has\n established itself as an early stage developer of renewable energy\n projects up to the point where large scale capital is required for\n construction.  The incoming cash will be used to pay down debt,\n aggressively manage our burn rate, and embark on a fiscally prudent\n review of opportunities in the marketplace within the next 2 to 6\n months.  Given the depressed state of a significant number of junior\n companies with excellent assets, it is an ideal time to be in a strong\n positive cash position.\"\n\n\nUnder the terms of the agreement with Pattern, up to $9.3 million will\n be paid to Finavera upon shareholder approval of the transaction and\n the completion of Pattern's acquisition of the project companies. The\n balance of the $28 million will be payable on a milestone basis as the\n projects proceed to construction financing.  Pattern has also agreed to\n provide a credit facility to the Company at a rate of 10% per annum,\n which will be repaid in 2013. The agreement is subject to approval from\n shareholders and the TSX Venture Exchange.  The Company will be mailing\n an Information Circular to shareh...