Atlantic Wind and Solar Inc. Signs $120 Million Project Financing Agreement With Canada Green ESCO Inc.
Source: Atlantic Wind & Solar Inc.
On Monday March 15, 2010
TORONTO--(Marketwire - 03/15/10) - Atlantic Wind and Solar Inc. (Pinksheets:AWSL - News) is pleased to announce that it was approached by Canada Green ESCO Inc. and that, after being provided a term sheet, it has successfully completed a $120 million financing agreement with this leading green energy funding company. The Agreement paves the way for Atlantic Wind and Solar, and its wholly owned subsidiary Atlantic Solar Inc., to aggressively proceed with its many solar projects and to expand its business in the Ontario rooftop solar business with funding as required.
About Canada Green ESCO Inc.
Canada Green ESCO Inc. (CanadESCO) is a privately owned, Canadian-based Energy Service Company (ESCO), exclusively focused on energy efficiency for Green Buildings. The Company designs, builds, maintains and FINANCES energy efficient systems and offers turn-key Project Management & Project Financing solutions.
As CanadESCO describes its business, "We utilize best-in-class Supply Chain Management with solar panel and inverter manufacturers, engineering companies, real-estate owners/developers and financing institutions from all around the world. CanadESCO offers 100% financing to its customers (levered and unlevered) comprised of large equity pools and low-interest debt. Our financing is tax efficient and qualifies for flow-through common shares tax deductions (CRCE) and accelerated depreciation (CCA 43.2)."
The Financing Agreement
Under the terms of the Agreement, Canada Green ESCO Inc. will facilitate up to 100% financing for the first round of projects, totaling $120 mil, through a combination of debt and equity. While CanadESCO can participate in up to as much as 100% of the equity portion, it is Atlantic's intention to participate in no less than 20% of the equity and as much as 50% in the case of a joint venture partnership with the landlord. There will be up to 100% of the equity in projects owned entirely by Atlantic. In any event, AWSL reserves the right to participate in some or all of the equity in each rooftop solar project.
This financing agreement is conditional upon receiving approval for each project application from the Ontario Power Authority (OPA), which AWSL management is confident will be received without undue delay. Providing that all local content requirements are met, the OPA guarantees speedy expediting of all FIT applications and ensures quick connection to the grid in order to begin purchasing the power from these 250kw projects for 20 years at 71.3 cents per kilowatt hour.
Atlantic will draw down on the $120 million as each individual OPA FIT application approval is received. Further details of each draw down financing will be announced upon receipt of such approval(s) and funding draw down(s).
This initial $120 million project financing is expected to fund all of AWSL's rooftop projects on hand and will also help to fund the Company's aggressive rooftop solar marketing program and the ramp-up in the manufacture of its high-performance inverters, the "heart" of its solar energy systems.
"We at CanadESCO are pleased to have signed this initial Financing Agreement with Atlantic Wind and Solar Inc. and look forward to a long and prosperous relationship during which we hope to facilitate further funding to support AWSL's long term growth trajectory."
David Schenk - Canada Green ESCO Inc.
AWSL... Poised for Growth
The Financing Agreement with CanadESCO is expected to fully fund AWSL's current rooftop solar projects and to also support aggressive marketing and other key aspects of corporate growth in the months ahead. Atlantic Wind and Solar Inc. is also involved in discussions regarding additional technologies and prospective agreements aimed at broadening the Company's exposure to growth in the multibillion dollar Renewable Energy industry, both at home and abroad. The Company also awaits approval concerning additional senior financings that will fund these business expansions and Renewable Energy endeavors.
Sales and Marketing Contacts
Property owners and managers with unobstructed commercial rooftops of 30,000 s/f or bigger in the Province of Ontario, Canada, and for which they are interested in possibly leasing to AWSL, are invited to contact Mr. Charles Mazzacato +1 800 891 1657 ext. 230. All other Renewable Energy system enquiries are asked to contact Mr. Gilles Trahan +1 800 891 1657 ext. 221.
For further coporate information and/or to subscribe for regular news updates from Atlantic Wind & Solar, please visit: www.atlanticwindandsolar.com
Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities.
The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.