For Immediate Release
July 15, 2020
Vancouver, B.C. – Oceanic Wind Energy Inc. (TSX-V: NKW) (the “Company” or “Oceanic Wind”) today announced the quarterly issuance of shares to the Company’s directors.
In connection with the board resolution to reduce the compensation of directors, as announced in a news release of January 14, 2016, the Company has issued a total of 154,019 common shares to its directors for the quarter ended June 30, 2020. All shares were issued at the closing share price for Tuesday, June 30, 2020 of $0.07.
Oceanic Wind is a British Columbia-based renewable energy company who has been developing an offshore wind project located off B.C.’s northwest coast, where the wind resource is one of the strongest and most consistent in the world.
At the Company’s most recent AGM and Special Meeting, the shareholders authorized the change of the Company’s name from NaiKun Wind Energy Group Inc. to Oceanic Wind Energy Inc. This change took effect May 28, 2020.
As previously announced, Oceanic Wind has entered into an agreement to sell the project to Northland Power Inc. (“Northland”), a global developer, owner and operator of sustainable infrastructure assets with expertise and capacity to advance the wind energy project to the next level of development. Upon successful completion of the transaction, Northland will be solely responsible for the development of project.
Under the terms of the sale, Oceanic Wind will receive: 1) upon project financial close, a payment based on the size of the developed project which represents a recovery of a portion of Naikun Wind’s prior development costs; 2) upon the project becoming operational, payments consisting of an annual cash distribution from the project after the operating costs and specified return on equity have been recovered by Northland; and 3) upon reaching project financial close, an option to purchase up to a 10% interest in the project. These terms are subject to the project being awarded a power purchase agreement (or equivalent) in the foreseeable future. Oceanic Wind cautions that there is no assurance that a power purchase agreement can be attained in the foreseeable future, however it is the Company’s opinion that the project is more likely to proceed under Northland’s management given their status and experience as a large Canadian developer, owner and operator of like projects.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. These statements relate to the future events or future performance. The use of any of the words “will” and similar expressions and statements are intended to identify forward- looking information and are based on NaiKun’s current beliefs or assumptions as to the outcome of such future events. Actual future results may differ materially. In particular, this press release contains forward looking-information concerning: the sale of all or substantially all of NaiKun’s assets, the anticipated closing of the Transaction, the successful completion of the Project, and the Cash Consideration and Cash Distribution to be paid under the Agreement. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The material facts and assumptions include, but are not limited to: the Transaction being completed; the process resulting in the completion and development of the Project, and Northland successfully entering into a Power Purchasing Agreement.
Many factors, both known and unknown, could cause actual results to be materially different from the results that are or may be expressed or implied by such forward-looking information contained in this press release. Such factors include, without limitation, the following risks: there may be undue delays in the completion of the Transaction; there may be undue delays or abandonment of the Project, and Northland may be unable to secure a Power Purchasing Agreement.
The forward-looking information contained in this press release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Due to the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward- looking information. The foregoing statements expressed qualify any forward-looking information contained herein.
For further information please contact:
Michael O’Connor, President & CEO
Tel: 604-631-4483 • Fax: 604-685-4215