The offering is being led by NCP Northland Capital Partners Inc. and includes Versant Partners Inc.
Macquarie Private Wealth Inc. is also participating in the placement as a “special selling group member”.
Net proceeds of the h share offering will be used for the continued development of four Finavera wind projects in British Columbia: the 77 MW Wildmare, 47 MW Tumbler Ridge, 117 MW Meikle, and 60 MW Bullmoose Wind Energy Projects.
GE Energy Financial Services, a unit of GE, has already agreed on the indicative terms of an equity investment in a 77 MW Wildmare project, which is located in British Columbia’s Peace River Region.
Under the agreement, Finavera would provide the non-cash equity, including the energy contract, permits and development work to date, and serve as managing partner for the $200 million (€143.8 million) project.
Founded in Dublin, Ireland in 2003, Finavera will be generating 302 megawatts of clean energy — enough to power 75,000 households — by the time the four projects are completion in 2015. Construction on the first project begins next year.
All of the projects have 25 year Electricity Purchase Agreements with BC Hydro. They also support British Columbia’s Energy Plan, which includes a commitment to electricity self-sufficiency by 2016 and zero net emissions from all new power generation.
Flow-through shares are often used by energy firms – mining and oil drilling companies, in particular – which often have to wait several years before their projects begin generating positive income – a prospect that scares off the typical investor.
To encourage investment, governments all the exploration costs of the company to be distributed to shareholders as tax deductions. This means that not only do investors get an immediate tax savings, but they also share in the profits once the project comes on line.
Last summer, Finavera, formerly Finavera Renewables Inc., signed a co-development agreement with Scottish and Southern Renewables for the 105 MW Cloosh Valley Wind Project in Ireland.
For additional information:
