Synex Renewable Energy Corporation Announces Sale of Wind Project in British Columbia

Rhea-AI Summary

Synex Renewable Energy (TSX: SXI) has announced the sale of its Bouleau Mountain Wind Project in British Columbia, Canada, through its subsidiary Sea Breeze Power Corp. The project will be sold to a leading renewable energy company for approximately $4.7 million, subject to an electricity purchase agreement (EPA) with BC Hydro, plus a 1% royalty on gross revenue.

The transaction includes an initial payment of $0.4 million upon closing, with the remaining balance paid as the project achieves specific milestones. Synex expects the deal to close in Q3 2024, subject to regulatory approvals. This sale is part of Synex's strategic review to enhance shareholder value and showcases the potential of their wind license portfolio acquired in 2021.

Positive

• Sale of Bouleau Mountain Wind Project for approximately $4.7 million
• 1% royalty on gross revenue of the Wind Project
• Initial payment of $0.4 million upon closing
• Potential for additional revenue as project milestones are achieved
• Reaffirmation of the value of Synex's wind license portfolio

Negative

• Full payment contingent on achieving project milestones and securing an EPA with BC Hydro
• Divestment of a potentially valuable asset from the company's portfolio

Vancouver, British Columbia--(Newsfile Corp. - August 6, 2024) - Synex Renewable Energy Corporation (TSX: SXI) ("Synex" or the "Company") today announced that its wholly owned subsidiary, Sea Breeze Power Corp. ("Sea Breeze"), has entered into a definitive agreement (the "Asset Purchase Agreement") with a leading renewable energy company (the "Buyer") pursuant to which Sea Breeze has agreed to sell to the Buyer its wind energy project known as the Bouleau Mountain Wind Project (the "Wind Project"), located in British Columbia, Canada (the "Transaction").

The purchase price of the Wind Project will be approximately $4.7 million, subject to entering into an EPA (as defined herein) with respect to the Wind Project, plus a royalty payment equal to one precent of the gross revenue of the Wind Project. Pursuant to the Asset Purchase Agreement, the Buyer has agreed to pay Sea Breeze an initial amount of $0.4 million in cash upon the closing of the Transaction with the remaining balance being paid upon the Wind Project achieving certain milestones, including the entering into of an electricity purchase agreement (the "EPA") with British Columbia Hydro and Power Authority ("BC Hydro") and the commercial operations of the Wind Project.

Synex expects the Transaction to close during the third quarter of 2024, subject to regulatory approvals and other customary closing conditions.

Mr. Daniel Russell, the President and Chief Executive Officer of both Synex and Sea Breeze, commented "as part of our ongoing strategic review of the Company with the aim of enhancing shareholder value, the sale of the Bouleau Mountain Wind Project reconfirms the significant value of our entire wind license portfolio. The Bouleau Mountain Wind Project is only one site of the many wind development sites Synex acquired in 2021 in connection with its acquisition of Sea Breeze. With our best-in-class wind license portfolio, we believe that we are in an ideal position to further commercialize our license portfolio given BC Hydro's renewed commitment to acquire new clean energy sources in British Columbia."

During the interim period prior to the closing of the Transaction, Sea Breeze will continue to develop the Wind Project in the ordinary course in compliance with applicable laws and the terms and conditions of the Asset Purchase Agreement.

Beacon Securities Limited acted as financial advisor to Synex. Dentons Canada LLP acted as legal counsel to Synex.

About Synex

Synex is a Vancouver, British Columbia based company engaged in the development, acquisition, ownership, and operation of renewable energy projects in Canada. It has ownership interests in 12 MW of operating hydro projects in British Columbia and owns a Vancouver Island grid connection and utility carrying on business as Kyuquot Power Ltd. The Company also has 9.4 MW of construction ready run-of-river projects, applications, and land tenures on another 24 potential hydroelectric sites totaling over 150 MW of capacity, and approximately 17 wind development sites that could provide up to 4,850 MW of clean power in British Columbia. For further information, visit www.synex.com.

For media inquiries, please contact:

Daniel J. Russell
President & CEO, Synex Renewable Energy Corporation.
4248 Broughton Avenue, Niagara Falls, ON L2E 3K6
Phone (905) 329-5000
E-mail: daniel.russell@synex.com

Forward-looking Information - This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information included in this press release reflects the current expectations of Synex management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "target", "will", "would" and the negative of these terms and other similar terminology or expressions have been used to identify the forward-looking information, which includes, without limitation, statements regarding the anticipated closing of the Transaction, installed capacity, the entering into of an EPA with respect to the Wind Project, satisfaction of closing conditions and regulatory approvals, business strategy, the potential for the sale of additional wind licenses, and plans and objectives of or involving Synex or Sea Breeze.

Forward-looking information involves significant risk, uncertainties and assumptions, including the capacity of the Wind Project being 144MW. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally, including those identified from time to time in the forward-looking information. Forward-looking statements contained herein are provided for the purposes of presenting information about management's current expectations and plans relating to the future and such information may not be appropriate for other purposes. Synex cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors should be considered carefully and undue reliance should not be placed on the forward-looking information. For additional information with respect to certain of these risks or factors, reference should be made to the continuous disclosure materials filed from time to time by Synex with Canadian securities regulatory authorities. Synex assumes no obligation or intention to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/218992

FAQ

What is the value of the Bouleau Mountain Wind Project sale by Synex Renewable Energy (TSX: SXI)?

The Bouleau Mountain Wind Project is being sold for approximately $4.7 million, subject to an electricity purchase agreement, plus a 1% royalty on gross revenue.

When is the expected closing date for Synex's (TSX: SXI) sale of the Bouleau Mountain Wind Project?

Synex expects the transaction to close during the third quarter of 2024, subject to regulatory approvals and other customary closing conditions.

How much initial payment will Synex (TSX: SXI) receive for the Bouleau Mountain Wind Project sale?

Synex will receive an initial payment of $0.4 million in cash upon the closing of the transaction.

What are the conditions for Synex (TSX: SXI) to receive the full payment for the Bouleau Mountain Wind Project?

The full payment is contingent on the Wind Project achieving certain milestones, including entering into an electricity purchase agreement with BC Hydro and reaching commercial operations.