2020-03-30 10:00 ET - News Release
Mr. Michael O'Connor of Naikun Wind Energy Group reports
NAIKUN WIND ANNOUNCES THE SIGNING OF AN AGREEMENT TO SELL OFFSHORE WIND PROJECT IN HECATE STRAIT TO NORTHLAND POWER INC.
Naikun Wind Energy Group Inc. has entered into an agreement to sell the Naikun offshore wind farm, located in the Hecate Strait, off the coast of British Columbia, Canada, to Northland Power Inc. 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");
- 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.
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