Sprott Power Corp. completes acquisition of shear wind and enters into agreements with new partner
Monday, Nov 26, 2012TORONTO, Nov. 23, 2012 /CNW/ - Sprott Power Corp. (TSX: SPZ) ("Sprott Power") and Shear Wind Inc. (TSXV: SWX) ("Shear Wind") are pleased to announce the closing of their plan of arrangement (the "Arrangement") and the establishment of agreements between Sprott Power and its new partner, Genera Avante Holdings Canada Inc. (together with certain of its affiliates,"GAHC"), for the operation
and development of the Shear Wind assets.
The acquisition adds the Glen Dhu Wind Farm, the largest wind farm in Nova Scotia, to Sprott Power's portfolio of assets, increasing its operating assets under management by approximately 80% from 80 MW to 143 MW. The additional operating assets also increase cash flows for Sprott Power. In addition, the Arrangement brings a pipeline of development assets in Alberta, Saskatchewan, New Brunswick and Nova Scotia that are complementary to Sprott Power's existing portfolio of development assets. Sprott Power has partnered with GAHC for the operation and development of the various assets. GAHC forms part of Inveravante, a business conglomerate based in Spain.
"We are extremely pleased about the addition of the Shear Wind assets to our portfolio", stated Mr. Jeff Jenner, President and CEO of Sprott Power. "The operating Glen Dhu wind farm will contribute to the cash flow for the company. We look forward to developing and bringing additional projects to commercial operation with our new partner, Genera Avante".
Payment of the consideration
Sprott Power acquired all of the class A voting common shares of Shear Wind ("Shear Wind Shares") for consideration of $0.2260407 per Shear Wind Share, which is comprised of the base consideration of $0.2213 and the Willow Ridge payment of $0.0047407. For shareholders who held Shear Wind Shares through a broker, the payment of the consideration will be processed through their broker.
For shareholders who held their Shear Wind Shares in registered form, the payment of the consideration will be processed after they deposit their share certificates with Olympia Trust Company, the depositary for the Arrangement, in accordance with the instructions in the Letter of Transmittal previously sent.
Any questions regarding payment of the consideration, including any request for another form of Letter of Transmittal, should be directed to the depositary via telephone at (403) 261-0900 or (416) 364-8081 or via email at corporateactions@oympiatrust.
About Sprott Power Corp.
Sprott Power is a publicly-traded Canadian-based company dedicated to the development, ownership and operation of renewable energy projects. Through project development efforts, acquisitions, partnerships and joint ventures, Sprott Power provides its shareholders with income and growth from the renewable power generation sector of the energy industry.
SOURCE Sprott Power Corp.