VANCOUVER, May 27, 2015 /CNW/ - Finavera Wind Energy
Inc. ('Finavera Wind Energy', 'Finavera' or the 'Company')
(TSX-V: FVR) is pleased to announce that it has received
approval from TSX Venture Exchange and closed a secured loan
facility for €3,757,000 (approximately $5,080,000 CAD) from a consortium of lenders
through the Company's subsidiary, Finavera Renewables Ireland
Limited ('Finavera Renewables'), in order to complete the
acquisition of Solar Alliance of America, a residential solar sales
and marketing firm ('Solar Alliance'), and for general working
capital. As previously announced, Finavera will acquire Solar
Alliance for 11,915,238 shares of the Company and contingent
payments of up to $4 million USD in
cash comprised of up to four instalments of $1 million USD, subject to certain closing
conditions. This loan facility will allow the Company to
scale up Solar Alliance's operations in California though an increased sales presence
and additional installation and financing partnerships. The
loan has a one year term and is repayable from the €7.14 million
(approximately $9.64 million CAD) of
proceeds from the sale of the Cloosh Valley Wind Project, expected
in 2015.
"The financing is non-dilutive to shareholders and allows the
Company to bring forward expected capital and accelerate its plans
for the development of Solar Alliance into a significant player in
the US residential solar market," said Finavera CEO Jason Bak. "This begins a new chapter in
Finavera's history and represents a milestone in our Company as we
focus on delivering distributed solar generation directly to
American households and enabling independence from a power industry
model established over one hundred years ago." Bak adds,
"Since Finavera's inception we have developed and sold over 360
megawatts of utility-scale renewable energy projects with capital
costs of over one billion
dollars. Now, in conjunction with the talent
incorporated in Solar Alliance and its market share, we will apply
that development expertise to the sales and installation of solar
power on a potential 113 million US homes, of which less than 1%
already have installed solar systems."
Solar Alliance of America, based in San Diego, California, is a solar sales and
marketing firm focused on residential solar installations. In
2013, Solar Alliance had $19.1
million in revenue and was ranked #49 on Inc. magazine's Top
500 list of America's Fastest Growing Private Companies, making it
#2 in the San Diego Area and #9 on
the list of Top 100 California companies. In 2012, Solar
Alliance was rated #45 on the Top 500 list. From its
inception in 2009, Solar Alliance has installed more than 1,500
residential solar systems in southern California.
The Company also advises that construction has begun on the
Cloosh Valley Wind Project and it is anticipated that financial
close will occur in 2015, thereby triggering payment to Finavera
Renewables. Until repayment, the loan is secured against
Finavera Renewables and guaranteed by the Company. A Finder's
Fee of €175,000 is payable in connection with the transaction,
along with 250,000 warrants of the Company with an exercise price
of $0.085 and an exercise term of one
year.
Jason Bak, CEO
About Finavera Wind Energy Inc.
(www.finavera.com)
Finavera Wind Energy is a company focused
on developing renewable energy opportunities. Our mission is
to create and operate a diversified portfolio of renewable energy
projects while protecting and enhancing the physical and social
environment. Finavera has developed over 360MW of wind
projects and subsequently sold them to utilities or large
independent power producers. Finavera is continuing to
opportunistically review prospects for growth and the enhancement
of shareholder value.
Statements in this news release, other than purely historical
information, including statements relating to the Company's future
plans and objectives or expected results, constitute
Forward-looking statements. The words "would", "will", "expected"
and "estimated" or other similar words and phrases are intended to
identify forward-looking information. Forward-looking information
is subject to known and unknown risks, uncertainties and other
factors that may cause the Company's actual results, level of
activity, performance or achievements to be materially different
than those expressed or implied by such forward-looking
information. Such factors include, but are not limited to:
uncertainties related to the ability to raise sufficient capital,
changes in economic conditions or financial markets, litigation,
legislative or other judicial, regulatory and political competitive
developments and technological or operational difficulties.
Consequently, actual results may vary materially from those
described in the forward-looking statements.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
SOURCE Finavera Wind Energy Inc.