Second utility-scale solar and BESS project in Alberta to reach ready-to build status in 2024
Westbridge Renewable Energy has closed the sale of its 75% owned, Special Area 2, Alberta solar power plant project,ith a capacity of up to 332MWp, to a subsidiary of METLEN Energy & Metals, as announced on June 1st, 2023 and June 5th, 2023.
Transaction Details
The Transaction was completed by way of the sale of all the issued and outstanding shares of Sunnynook Solar Energy Inc. Westbridge satisfied the conditions for the Transaction, including regulatory approvals from the Alberta Utilities Commission for the construction, operation, and interconnection of the Project to the Alberta Interconnected Electric System, and for the TSX Venture Exchange. The Company received C$41,440,385 at closing of the Transaction. METLEN paid approximately 3% of the estimated base purchase price at signing and 92% of the estimated purchase price was paid at closing. The balance of the purchase price is expected to be paid when the Project reaches commercial operations.
In connection with closing of the Transaction, Westbridge repaid in full C$18,405,650 from the proceeds of the Transaction, owing under its loan facilities secured by the Project and the shares of Sunnynook, provided by certain lending entities established by Leyline Renewable Capital, LLC, and the security registered in respect thereof has been discharged.
Westbridge continues to retain ownership and is continuing to advance the projects of the three other wholly-owned Alberta subsidiaries (the “SPVs”) which are also subject to the previously announced share purchase agreements with METLEN. The sale of the shares of each SPV is not conditional on the sale of the shares of any other of the SPVs. Accordingly, each individual closing is expected to occur as soon as the conditions to satisfy the purchase and sale of the shares of the relevant SPV are met or waived, including regulatory approvals from the AUC and TSXV.
Stefano Romanin, CEO and Director of Westbridge Renewable commented,
'We are delighted to announce the closing of the Sunnynook Project. This marks another significant milestone for Westbridge; it is our second utility-scale project monetized in the last 12 months, and it is also our second project advanced to ‘ready-to-build’ in Alberta. We have strong momentum in the 3 further projects committed for sale to METLEN and recently received AUC approval for the 300MW Dolcy Solar Project see press release dated Sept 17, 2024.
The Sunnynook project will be built by METLEN and, when completed, is expected to produce enough clean energy to power more than 50,000 Alberta homes. We applaud METLEN for its strategic vision and significant investment in the Province of Alberta. In addition to the success in Alberta, we are seeing exceptional growth across our wider project portfolio in the US and other key markets.'
Luis Laguna, Regional Managing Director, North America – METLEN Energy & Metals, stated: 'We are excited to take this important step with the closing of the Sunnynook Project, marking a significant milestone for METLEN in the Canadian market. This project aligns with our strategic goal to expand our renewable energy footprint across North America and reinforces our commitment to delivering sustainable, clean energy. We look forward to continued success with Westbridge and to building on our strong momentum in the sector.'
Source: Westbridge Renewable
