OAKVILLE, ONTARIO — June 23, 2020 — Spark Power Group Inc. (TSX: SPG), parent company of Spark Power Corp. (“Spark Power” or the “Company”), is pleased to announce that the previously appointed Special Committee (the “Special Committee”) of the Board of Directors (the “Board”) is considering a near term restart of the strategic review process described below, which was suspended on May 4, 2020 due to the COVID-19 pandemic. The Special Committee is comprised solely of independent directors of the Board, consisting of Mr. Larry Taylor (Chair), Mr. Lucio Di Clemente and Mr. Joe Quarin.
“Spark Power’s ability to successfully navigate through an unprecedented period of crisis highlights the strength of the management team and the flexible and distributed nature of the operating model. It is clear evidence that the Company’s strategic focus on revenue diversification and essential industries provides the stability and resilience necessary in these most difficult economic times,” said Larry Taylor, Chair of the Board, and Chair of the Special Committee. “As the Company returns to its trajectory of revenue growth and profitability, and as market conditions improve, the Special Committee and its advisors are considering a near term relaunch of the strategic review process,” added Taylor.
While COVID-19 has undeniably created business challenges in the economy and has had a material impact on the business, the Company’s role as a supplier of critical services – largely to customers deemed ‘essential’ – has limited the scale of the impact and is resulting in a rapid return to pre-pandemic revenue levels. Based on swift operational actions taken at the onset of the pandemic, a keen focus on cash flow, and the support of federal wage subsidy programs in both Canada and the United States, the Company’s liquidity position has substantially improved since March, and is well positioned to fund the operating capital required to support this growth.
“We have been working hard to limit the bulk of the impact of COVID-19 to the second quarter and manage liquidity, and I am pleased to now see strong momentum in all parts of our business – with several business units recently relaunching paused hiring plans,” said Jason Sparaga, co-CEO, Spark Power Corp. “This gives me confidence that it is time to return our attention to the key elements of our growth strategy: to be our customers’ Trusted Partner in Power™ and to drive for balanced growth. We are again investing in organic growth and have re-engaged with several acquisition targets, and we look forward to working with the Special Committee in the strategic review process that is focused on providing the necessary capital to support our longer term growth plans”, added Sparaga.
As announced by the Company on February 4, 2020, the strategic review process is being undertaken with a view to enhancing shareholder value. The review will be conducted by the Special Committee. The Special Committee has been authorized to identify, evaluate and consider a broad range of alternatives available to the Company, focused on providing the necessary capital to execute on the Company’s strategic plan. In connection with the strategic review process, KeyBanc Capital Markets has been engaged as sole and exclusive financial advisor to the Special Committee, Cassels Brock & Blackwell LLP has been engaged as legal advisor to the Company and Bennett Jones LLP has been engaged as legal advisor to the Special Committee. The review has not been initiated in response to any proposal received by the Company. The Company, with the assistance of the Special Committee and its advisors, intends to complete the review process in a timely fashion, however, there is no assurance that these efforts will be successful or that the review process will result in pursuing or completing any transaction and no timetable has been set for the completion of the review process. The Company will update the market when it determines that further disclosure on the review process is appropriate or required.
About Spark Power
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.
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