Oceanic plans to sell shares to help Northland secure offshore wind PPA
July 8 (Renewables Now) – Oceanic Wind Energy Inc (CVE: NKW.H) plans to raise up to CAD 300,000 ($ 239,000 / EUR 202,000) through a non-middleman private placement to help reach a key milestone for an offshore wind project in Canadian waters.
The British Columbia-based renewable energy company said it would place up to 2.07 million units at a price of CAD 0.145 each, with each unit consisting of one common share and one warrant. ordinary action. The exercise price of each warrant is set at CAD 0.20.
Oceanic has indicated that it will use the net proceeds of the offering for general corporate purposes, working capital and to assist Northland Power Inc (TSE: NPI) in securing a Power Purchase Agreement (PPA) for the offshore wind project in the Hecate Strait.
The company, then known as NaiKun Wind Energy Group Inc, agreed to sell the particular project to Northland in March 2020 and closed the transaction later in the year.
Under the terms of the agreement, once the project reaches financial close, Oceanic will obtain payment based on the size of the developed project and an option to purchase a stake of up to 10% in the stake of Northland in the project. Additionally, upon completion of the wind farm, NaiKun will receive an annual cash distribution from the plant once operating costs and specified return on equity have been recovered by Northland.
Oceanic’s website suggests the wind farm could reach 400 MW.
(1 CAD = 0.80 USD / 0.67 EUR)