Finavera Wind Energy (TSXV:FVR) today announced it had signed a binding purchase and sale agreement to sell its 77-megawatt Wildmare wind energy project for approximately $22-million to Innergex Renewable Energy (TSX:INE).
Finavera CEO Jason Bak said: “We are extremely pleased to sign this agreement with Innergex for the sale of the Wildmare wind energy project.” He added: “This transaction illustrates the significant asset value Finavera has created for shareholders and provides a strong return on our investment in the development of wind energy for British Columbia. This transaction creates a stable platform for long-term growth and allows Finavera to recycle capital and fund the ongoing development of its remaining portfolio of projects.”
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Finavera, which is headquartered in Vancouver, was actually founded in Dublin in 2003. The company is now decidedly Canadian, with four wind projects in Canada compared to just one in Ireland, a 105 MW project on that country’s west coast. In February of last year, The company made a deal with GE Energy Financial Services that would see GE invest $40 million in the Wildmare project that Finavera planned to build near Chetwynd, BC. Finavera says it is in talks with GE on partnering on its other wind farms, including Tumbler Ridge, the 117-megawatt Meikle, and the 60-megawatt Bullmoose project.
The transaction will shore up Finavera’s tentative books. The company lost $3.24 million in 2011 and its cash position had dwindled to just $41,209 as of March 31st, 2012.
Bak says the transaction serves as a reminder of Finavera’s business model, which is to take projects from development stage to advanced permitting, where it determines whether to sell the project or finance and construct it themselves. With today’s sale double Finavera’s current market cap, Bak says the transaction validates the company’s business and could be replicated across its entire BC portfolio. Shareholders will be watching Tunbler Ridge closely. In April, Finavera received environmental approval for the 49.6-megawatt wind project.
At press time, share of Finavera were up 34% to $.295 cents.