Vancouver, B.C. Sept 1, 2020 – Oceanic Wind Energy Inc. (TSX-V: NKW) (the “Company” or “Oceanic”) is pleased to announce that it has closed on the agreement (the “Agreement”) to sell the Offshore Wind Farm located in the Hecate Strait off the coast of British Columbia, Canada (the “Project”) to Northland Power Inc. (TSX: NPI) (“Northland”), a global developer, owner and operator of sustainable infrastructure assets with expertise and capacity to advance early stage renewable energy projects to the next level of development (the “Transaction”). With the successful completion of the Transaction, Northland is responsible for all aspects of the Project’s development. The Transaction occurred by way of the Company selling Northland a 100% interest in its wholly owned subsidiary, NaiKun Wind Development Inc.
On March 27, 2020 Oceanic announced the signing of an agreement to sell the Offshore Wind Project in Hecate Strait to Northland.
On May 15, 2020 an AGM and Special Shareholders Meeting was held to provide all shareholders the opportunity to vote on the signed agreements, to vote on the name change to Oceanic Wind Energy Inc and to conduct the regular AGM business.
At the meeting the shareholders approved, with a vote of 99% of voted shares, the sale of the Offshore Wind Project to Northland by selling them NaiKun Wind Development Inc. and the shareholders approved, with a vote of 99% of voted shares, the name change of the Company to Oceanic Wind Energy Inc.
Pursuant to the terms of the sale to Northland, Oceanic 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”); and
- 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”).
About Oceanic Wind Energy Inc.
Oceanic 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.
Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements – This news release contains certain forward- looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward- looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
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.