Vancouver, B.C. – March 31, 2020 – NaiKun Wind Energy Group Inc. (TSX-V: NKW) (the “Company” or “NaiKun”) wishes to provide additional details regarding the proposed sale of the NaiKun Offshore Wind Farm (the “Project”) located in the Hecate Strait off the coast of British Columbia, Canada to Northland Power Inc. (TSX: NPI) (“Northland”) (the “Transaction”), as previously announced on March 30, 2020 (the “Initial News Release”). The Transaction constitutes the sale of all or substantially all of the assets of the Company. Unless otherwise defined herein, all capitalized terms used in this press release have the meaning given to them in the Initial News Release.
In connection with the Transaction, management of the Company wish to provide the following details:
- upon successful completion of the Transaction, Northland will be solely responsible for all aspects of the Project’s development, subject only to the Option granted to NaiKun pursuant to the terms of the Agreement;
- NaiKun is unable to provide a dollar value to the Cash Consideration and Cash Distribution at this time, as such consideration is contingent on (i) Northland successfully entering into a power purchase agreement (a “Power Purchase Agreement”) with the relevant authorities in British Columbia, (ii) the size and term of such a Power Purchase Agreement, and (iii) such future Power Purchase Agreements as may be awarded to Northland in the Project area; and
- 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.
About NaiKun Wind Energy Group Inc.
NaiKun 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.
NaiKun Wind Energy Group Inc.
Contact: Michael O’Connor, President and Chief Executive Officer
Neither TSX Venture Exchange (“TSX-V”) nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) 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.