NaiKun Wind Announces the Signing of an Agreement to Sell Offshore Wind Project in Hecate Strait to Northland Power Inc.
VANCOUVER, British Columbia, March 30, 2020 (GLOBE NEWSWIRE) -- NaiKun Wind Energy Group Inc. (TSX-V: NKW) (the “Company” or “NaiKun”) is pleased to announce that it has entered into an agreement (the “Agreement”) to sell the NaiKun Offshore Wind Farm located in the Hecate Strait off the coast of British Columbia, Canada (the “Project”) to Northland Power Inc. (TSX: NPI) (“Northland”), a global developer, owner and operator of sustainable infrastructure assets with expertise and capacity to advance early stage renewable energy projects to the next level of development (the “Transaction”). Upon successful completion of the Transaction, Northland will be responsible for all aspects of the Project’s development. The Transaction will occur by way of the Company selling Northland a 100% interest in its wholly owned subsidiary, NaiKun Wind Development Inc.
Pursuant to the terms of the Agreement, NaiKun will receive the following:
- upon the Project reaching its financial close, a payment based on the size of the developed Project, which is expected to equal to the majority of NaiKun’s historical development costs on the Project (the “Cash Consideration”);
- upon the Project becoming operational, future payments consisting of an annual cash distribution from the Project after the operating costs and specified return on equity have been recovered by Northland (the “Cash Distribution”); and
- subject to financial close of the Project, an option to purchase up to a 10% interest in Northland’s interest in the Project (the “Option”).
The Transaction is anticipated to close in mid-2020, subject to the satisfaction of certain customary conditions, including but not limited to the Company obtaining the applicable regulatory approvals and approval of the Transaction by way of a special resolution of the Company’s shareholders.
The Transaction has been approved unanimously by the Company’s board of directors (the “Board”). The Board recommends that the shareholders vote in favour of approving the Transaction at a special meeting of shareholders, to be scheduled as soon as possible (the “Meeting”).
The Company is preparing a management information circular (the “Circular”) for shareholders in respect of the Meeting that will further explain the terms and conditions of the Transaction, and which will be delivered to shareholders.
The Company will make appropriate determinations as to the use of the Cash Consideration and the Cash Distribution at the time of receipt of such payments.
About NaiKun Wind Energy Group Inc.
NaiKun is a British Columbia-based renewable energy company. Located on B.C.’s northwest coast, where the wind resource is one of the strongest and most consistent in the world.
| NaiKun Wind Energy Group Inc. | |
| Contact: | Michael O’Connor, President and Chief Executive Officer |
| 604-631-4483, | |
| Website: | |
Neither TSX Venture Exchange (“TSX-V”) nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. These statements relate to the future events or future performance. The use of any of the words “will”, “anticipate”, “expect” and similar expressions and statements are intended to identify forward-looking information and are based on NaiKun’s current beliefs or assumptions as to the outcome of such future events. Actual future results may differ materially. In particular, this press release contains forward looking-information concerning: the anticipated closing of the Transaction, the successful completion of the Project, and the Cash Consideration to be paid under the Agreement upon the successful completion of the Project. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The material facts and assumptions include but are not limited to: NaiKun obtaining all necessary approvals with respect to the Transaction; the Transaction being completed; and the process resulting in the completion and development of the Project.
Many factors, both known and unknown, could cause actual results to be materially different from the results that are or may be expressed or implied by such forward-looking information contained in this press release. Such factors include, without limitation, the following risks: NaiKun may not receive all necessary approvals for the Transaction; there may be undue delays in the completion of the Transaction; and there may be undue delays or abandonment of the Project.
The forward-looking information contained in this press release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Due to the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressed qualify any forward-looking information contained herein.
