Finavera Renewables has announced that it has signed an agreement
with Trafalgar Capital Specialized Investment Fund, FIS (Trafalgar)
to carry out a $10m unsecured convertible debenture financing.
Finavera will draw down an initial $2m upon closing of the
final agreement. The remaining $8m may be drawn down using
either convertible or non-convertible structures as negotiated
by Finavera Renewables and Trafalgar.
This convertible debenture financing will provide Finavera
Renewables with the working capital required to advance the
company’s projects. It will allow the company to continue
the development of its wind and wave energy projects as it
moves toward several key milestones. Those milestones include
- Investigation of joint venture and various partnership
opportunities as part of a financing strategy for the company’s
portfolio of wind projects in Alberta, British Columbia
- Preparing bids to enter up to five British Columbia wind
projects into the 2008 BC Hydro Clean Power Call. Up to
350 MW of clean electricity from these five projects could
supply power for more than 100,000 homes.
- Completing final design for the 75 MW Ghost
Pine wind project in Alberta, which is in the process
of submitting final environmental and development permits.
- Finalising the technology advancement plan for AquaBuOY
3.0 wave energy technology and project development
Finavera CEO Jason Bak said - “We are aggressively pursuing
project finance options for our renewable power projects in
order to advance them towards construction and revenue generation.
We are now in discussions to bring one or more equity partners
directly in at the project level. The rationale for this is
that we don’t believe our projects are being properly valued
in our share price and it makes sense to bring that equity
into the projects. This financing allows us to pursue those
opportunities, while protecting shareholders from undue dilution.”
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