OAKVILLE, ON – September 30, 2019 – Spark Power Group Inc. (TSX: SPG), parent company of Spark Power Corp. (“Spark Power” or the “Company”), a leading independent provider of end-to-end electrical contracting, operations and maintenance services, and energy sustainability solutions to the industrial, commercial, utility, and renewable asset markets across North America is pleased to announce an amendment to its financial arrangement under its credit agreement with its banking partner, the Bank of Montreal (“BMO”).
The amending agreement contains the following key terms:
- Conversion of Spark Power’s acquisition line to a committed facility; and
- Conditional approval for an acquisition (for which the Company’s acquisition line will be utilized).
Pursuant to this approval by BMO, the net proceeds from the Company’s recently announced Rights Offering will be used to repay a portion of both the term and revolving indebtedness outstanding under the Company’s credit facilities with BMO. “We are pleased to have a committed and supportive partner in BMO who understands our business goals and supports our need for financial and operational flexibility”, said Dan Ardila, CFO, Spark Power Corp. “This will enable the Company to access the full $35M available under our operating and capital lines, resulting in increased liquidity to support continued organic and acquisition-led growth”, added Ardila.
In addition, Spark Power confirms that it has entered into a non-binding letter of intent with an independently owned company regarding a potential significant acquisition. Spark Power anticipates the potential transaction will be completed by October 31, 2019. Completion of the potential acquisition is subject to negotiation of definitive agreements acceptable to the parties and satisfaction of all conditions set out in the definitive agreements. Jason Sparaga, Co-CEO of Spark Power said, “I am very excited by the strategic fit of this potential acquisition. If completed, this will represent Spark Power’s 11th acquisition, and will significantly expand our presence in the United States, consistent with the Company’s strategic plan.”
About Spark Power Group Inc.
Spark Power Corp (“Spark Power”) is the leading independent provider of end-to-end electrical contracting, operations and maintenance services, and energy sustainability solutions to the industrial, commercial, utility, and renewable asset markets in North America. We work to earn the right to be our customers’ Trusted Partner in Power™. Our highly skilled and dedicated people, located in the communities we serve, combined with our knowledge of the power industry, technology expertise, and commitment to safety, ensures we deliver the right solutions that keep our customers’ operations up and running today and better equipped for tomorrow. Learn more at www.sparkpowercorp.com.
This news release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate” and other similar expressions and includes information regarding the signing of the Amended Agreement with BMO, the anticipated use of proceeds from the Rights Offering, and the intention of entering into a potential acquisition. Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
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