Polaris Infrastructure Announces Closing of Acquisition in the Dominican Republic

TORONTO, ON / ACCESSWIRE / June 28, 2022 / All amounts in USD unless otherwise stated) - Polaris Infrastructure Inc. (TSX:PIF) ("Polaris" or the "Company"), announced today that it has closed the previously announced acquisition of an operational solar project in the Dominican Republic.

The Dominican Republic - Solar

Polaris has completed the acquisition from a Canadian based renewable energy developer, Potentia Renewables Inc., a 32 MWdc operational solar project named Canoa 1 (the "Project") located in the Barahona Province, Dominican Republic. The Project reached COD in March 2020 and has a 20 year power purchase agreement ("PPA") in place with Edesur Dominicana SA (EDESUR), a local Dominican distributor.

The key terms and attributes of the acquisition are as follows:

- Polaris purchased all of the issued and outstanding common shares of Emerald Solar Energy SRL which owns 100% of the Project and the licenses and permits, in exchange for $20.3 million in cash, including closing adjustments;

- Polaris now owns 100% of the Project which includes the Canoa 2 expansion as described below;

- Polaris assumed non-recourse debt at the project level of $35.3 million;

- The Project has a PPA denominated in US$ with an estimated price for 2022 of $128.10 per Mwhr. Such PPA has an inflator of 1.22% per annum until the price reaches $142.80 per Mwhr at which point the price remains fixed until the end of the PPA in 2040.

The Project has an extendable 30-year lease agreement with the original developer and is located on a portion of a land parcel totalling ~1.4km2. The Canoa 1 project represents approximately 30% of the total land parcel. The definitive Concession allows for the capacity installed to be doubled from the current operating capacity of 32.6 MWdc to approximately 65 MWdc.

A second PPA for Canoa 2 with the local distributor would be required and these discussions are actively continuing. To the extent a PPA for Canoa 2 is reached, Polaris will look to commence construction shortly thereafter.

"We are very pleased to have closed on this acquisition" stated Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure, "The combination of operational and development assets is the mix of assets we have been looking for and aligns with our strategic objectives. Now that the acquisition is closed, our jurisdictions will have increase to four and our plants in operation will increase to five with operational solar added to the generation mix. As well, we do expect to close on our previously announced Ecuadorian transaction in Q3-22. This is all aligned with the goal of diversification by asset class and generation mix while maintaining 100% of revenues derived in US dollars. In addition, we view the Dominican Republic as a very attractive market for Polaris to grow and develop further renewable projects."

Polaris Infrastructure funded the acquisition with cash on hand.

About Polaris Infrastructure

Polaris Infrastructure is a Toronto-based company engaged in the operation, acquisition, and development of renewable energy projects in Latin America. Currently, the Company owns and operates a geothermal project located in Nicaragua, three hydro projects located in Peru, and is developing solar projects in Panama.

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This press release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the ability to complete the acquisition of the Project on the terms described in this press release or at all, the anticipated MW of the Project, the anticipated investments required to complete construction of the Project, the anticipated timeline required to achieve commercial operation, the ability to fund construction with cash on hand and funds generated through operations, and the expected benefits from the acquisition of the Project and diversification into Dominican Republic and the availability of similar acquisition opportunities in Panama. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal and hydro energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal and hydro power industries; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities, or in the commencement of operations; the ability of the Company to continue as a going concern and general economic conditions, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully and readers of this press release should not place undue reliance on forward-looking information.

Although the forward-looking information contained in this press release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The information in this press release, including such forward-looking information, is made as of the date of this press release and, other than as required by applicable securities laws, Polaris Infrastructure assumes no obligation to update or revise such information to reflect new events or circumstances.

SOURCE: Polaris Infrastructure, Inc.