Berkley Renewables' announces establishment of limited partnership to develop solar energy projects in Ontario
Wednesday, Nov 21, 2012Berkley Renewables Inc. ("Berkley ") (CNSX:BKS)(FRANKFURT:WKN 871666)(BERLIN:WKN 871666) announced today that Solar Flow-Through 2012-I Limited Partnership ("Solar Flow-Through"), a limited partnership established by Berkley under laws of British Columbia, has completed the initial tranche of a private placement unit financing led by Macquarie Private Wealth Inc. The financing consists of up to a total of 100,000 units of Solar Flow-Through offered at a price of CDN$100 per unit, and 20,027 Limited Partnership units were issued in the first tranche for gross proceeds to Solar Flow-Through of CDN$2,027,000. A second tranche of the placement is expected to close on or before December 20, 2012.
The funds from the private placement financing will be used by Solar Flow-Through to develop and operate solar power generation projects in the Province of Ontario under the Ontario Power Authority's (OPA) Feed-in-Tariff (FIT) program. FIT contracts provide fixed purchase rates for solar power and are guaranteed by the OPA for 20 years.
Berkley owns 95% of Solar Flow-Through General Partner Ltd., the general partner of Solar Flow-Through (the "General Partner"), as well as Solar Flow-Through Management Ltd., the manager of Solar Flow-Through (the "Manager"). The General Partner is responsible for approving and monitoring Solar Flow-Through's various service providers, including the Manager. The Manager directs the affairs of, and provides day-to-day management services to, Solar Flow-Through. In exchange for its services, the Manager will receive an annual management fee equal to 1.5% of the amount invested by Solar Flow-Through in power generation projects, including borrowed amounts. Berkley, as 95% holder of the Manager, will be entitled to 95% of the profits generated by the Manager.