Finavera Wind Energy Inc. (‘Finavera Wind Energy’ or the ‘Company’) (TSX-V: FVR) is pleased to announce that further to its press release dated
March 29, 2011, it has issued an additional 425,532 flow-through shares under the terms of the over-allotment option (the “Over-Allotment”). The shares were issued at a price of $0.94 per share for additional gross proceeds of $400,000. Total gross proceeds raised by the Company increased to $4,703,583. The offering was led by NCP Northland Capital Partners Inc., in a syndicate that included Versant Partners Inc. (collectively the “Agents”). Macquarie Private Wealth Inc. also participated in the placement as a “special selling group member”.
In connection with the closing of the shares issued under the Over-Allotment, the Agents received a cash commission of 7% of gross proceeds and compensation options entitling the Agents to purchase 29,787 common shares of the company. The compensation options are exercisable at a price of $0.94 per share until April 18, 2013. All securities issued in connection with the exercise of the Over-Allotment option are subject to a hold period which expires on August 19, 2011.
The proceeds from the sale of flow-through shares will be used for the continued development of the Company’s portfolio of wind projects in British Columbia. The portfolio includes the 77 megawatt (“MW”) Wildmare, 47 MW Tumbler Ridge, 117 MW Meikle, and 60 MW Bullmoose Wind Energy Projects which all have 25 year Electricity Purchase Agreements with BC Hydro. The Wildmare and Tumbler Ridge projects have also recently passed the screening stage of the British Columbia Environmental Assessment process and are currently in the Application Review stage.
The Company’s expenditures on the projects will qualify as “Canadian Renewable and Conservation Expenses” (“CRCE”), which qualify as Canadian Exploration Expenses (“CEE”) under the Income Tax Act (Canada) and will be renounced to investors for the 2011 taxation year. The TSX Venture Exchange granted conditional approval to close the offering on March 25, 2011.
This press release, as required by applicable Canadian laws, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.
Jason Bak, CEO