Nu E Power Corp. Secures USD 6.2 Million Loan Financing Agreement

Rhea-AI Summary

Nu E Power Corp (CSE: NUE, OTC: NUEPF) has secured a USD 6.2 million debt financing agreement with Global Green Asset Finance (GGAF). The non-revolving senior secured debt will be used for corporate acquisitions. Key terms of the agreement include:

• 1-year term with no early repayment penalty
• 20% interest rate payable monthly in arrears
• Repayment requirements triggered by certain future prepayment events

The loan documentation is subject to final due diligence and customary conditions, with closing expected in May 2025.

Positive

• Secured significant USD 6.2 million in debt financing
• No dilution to shareholders as financing is debt-based
• Flexibility with no early repayment penalties

Negative

• High interest rate of 20% increases financial burden
• Short-term nature of loan (1-year) may create refinancing pressure
• Additional debt increases company's leverage and financial risk

Calgary, Alberta--(Newsfile Corp. - April 28, 2025) - Nu E Power Corp. (CSE: NUE) (OTC Pink: NUEPF) (the "Company" or "Nu E") announces‎ that it has secured a $USD 6.2 million debt financing and has executed a financing agreement with Global Green Asset Finance Ltd. ("GGAF") for project financing of up to $USD 6.2 million in non-revolving senior secured debt (the "Financing"). Proceeds from the Financing will be used for corporate acquisitions.

Mr. Devon Sandford, CEO of Nu E commented that "We are very thankful for the support and confidence in NU E that GGAF has demonstrated. The USD 6.2 million facility will allow us to aggressively pursue opportunities and acquisitions that are in our opinion both valuable and accretive to Nu E while limiting dilution."

The following is a summary of the material terms of the Agreement:

GGAF will provide a secured loan of up to USD 6.2 million;

1. 1 year term with no penalty for early repayment;

2. interest rate of 20% payable monthly in arrears; and

3. The Company shall be required to repay all or a portion of the debt, as applicable, upon the occurrence of certain future prepayment events.

The terms noted above are subject to change at the time of authorization.

The loan documentation is subject to final due diligence, satisfaction of customary loan conditions, and is progressing. Closing is expected to occur in May, 2025

About Nu E Power Corp.

Nu E Power Corp. is a green energy company focused on the developing, construction, and operating clean and renewable energy infrastructure across North America. The Company has a partnership with Low Carbon Canada Solar Limited, a subsidiary of the UK based renewables major, Low Carbon Investment Management Ltd. To facilitate non-dilutive investment into the Company with the goal of developing up to 2GW of renewable energy projects in Canada by 2030.

Contact Information

For more information, please contact:

Investor Relations   E-mail: info@nu-ecorp.com

John Newman, Chief Financial Officer   E-mail: john@nu-ecorp.com

 

The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor ‎disapproved of the contents of this press release.‎

This press release contains statements which constitute "forward‐looking information" within the meaning of applicable Canadian securities laws. Forward‐looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" or similar expressions. Readers are cautioned that forward‐looking information is not based on historical facts but instead reflects the Company's management's expectations, estimates or projections concerning the business of the Company's 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. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: the anticipated execution of definitive loan agreements with respect to the GGAF Financing;‎ changes in Nu E's business, general economic, business and political conditions, including changes in the financial markets; decreases in the prevailing prices for products in the markets that the Company operates in; adverse changes in applicable laws or adverse changes in the application or enforcement of current laws; regulations and enforcement priorities of governmental authorities; compliance with government regulation and related costs; and other risks described in the Listing Statement of Nu E posted on SEDAR+. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249927

FAQ

What are the key terms of Nu E Power's (NUEPF) USD 6.2 million loan agreement?

The loan includes a 1-year term, 20% interest rate payable monthly, no early repayment penalties, and is secured senior debt provided by Global Green Asset Finance

How will Nu E Power (NUEPF) use the USD 6.2 million financing?

The financing proceeds will be used for corporate acquisitions, as stated in the announcement.

When is the expected closing date for Nu E Power's (NUEPF) USD 6.2 million loan?

The loan closing is expected to occur in May 2025, subject to final due diligence and customary conditions.

What is the interest rate on Nu E Power's (NUEPF) new debt financing?

The loan carries a 20% interest rate, payable monthly in arrears.