Schneider Power to acquire Grand Valley Wind Farms; announces non-brokered private placement

Company logo of Schneider Power Inc. Image sourced from Schneider Power Inc.

Canadian renewable energy company, Schneider Power Inc., has signed an $800,000 contract to acquire Ontario-based Grand Valley Wind Farms Inc. from EarthFirst Canada Inc., in partnership with Lands End Corporation, the original developer of the project.

The Court of Queen’s Bench of Alberta must first approve the all-cash transaction in conformance to EarthFirst’s current proceedings under the Companies Creditors’ Arrangement Act. Once court approval is obtained, the transaction is expected to be completed on or about May 27, 2009.

Schneider Power will have a 66% stake in the joint venture with Lands End Corporation holding a 34% interest. The Grand Valley Wind Farms hold three Ontario Renewable Energy Standard Offer Program (RESOP) contracts for a total of 22 megawatts (MW) of fully-permitted capacity. Additional 28 MWs of capacity is planned to be developed under the new Ontario Feed-In Tariff Program.

Schneider Power also announces a non-brokered private placement of up to 10 million units at a $0.11 per unit, 3,928,571 “flow-through” shares at $0.14 per share, or a combination of units and flow-through shares that would bring gross proceeds of up to $1.1 million. Each unit will comprise of one common share and half of a common share purchase warrant, which will allow the holder to purchase one Schneider Power common share at a price of $0.22 for a two-year period.

The company plans to use the funding raised in the offering to finance a portion of its acquisition of the Grand Valley Wind Farms and for the ongoing development of its other renewable energy projects.

Schneider Power is one of Canada’s leading independent renewable energy companies, having developed more than 1000 MW of clean, renewable energy. The company’s headquarters is located in Toronto, Canada, with offices in New York and Denver.


-  Natassia Y. Laforteza

Sources:

¹ http://www.schneiderpower.com/press-releases?view=32
² http://www.schneiderpower.com/