Finavera signs agreement for $10 million convertible debenture financing

 

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 and Ireland.
  • 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 prospects.

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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