New York, August 9 (alphajetsusa.com) – In order to expand portfolio of wind power projects, Sprott Power Corp, which is a renowned developer of renewable energy of Canada, finally consented to purchase Shear Wind Inc for $33.2 million in cash.
So, to obtain all the shares of Shear Wind, Sprott Power will have to pay 22 Canadian cents that is actually an amount valuing it at the price of C$79 million. Furthermore, SPZ informed about determination of holders, who are epitomizing Shear Wind’s 74 percent shares, to make their choices in favor of the possession. To finance the possession partly, it also informed about offloading C$30 million of 6.75 percent exchangeable unsecured subordinated debentures to an underwriters group accompanied by Canaccord Genuity Corp.
Following the possession at an exchange price of C$1.30 per share, each C$1,000 principle amount of debentures will be exchangeable into about 796 shares of Sprott. Moreover, nearly C$51 million debt of Shear Wind that is supposed to get compensated by approximately C$5 million in cash will be ascertained by Sprott.
In Toronto, shares of Shear Wind skidded 11 percent closing at 17 Canadian cents. However, at 98 Canadian cents, Sprott remain unchanged.