/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRES/
OAKVILLE, ON, Sept. 30, 2019 /CNW/ - Spark Power Group Inc.
(TSX: SPG), parent company of Spark Power Corp. ("Spark
Power" or the "Company"), a leading independent provider
of end-to-end electrical contracting, operations and maintenance
services, and energy sustainability solutions to the industrial,
commercial, utility, and renewable asset markets across North
America is pleased to announce an amendment to its financial
arrangement under its credit agreement with its banking partner,
the Bank of Montreal
("BMO").
The amending agreement contains the following key terms:
- Conversion of Spark Power's acquisition line to a committed
facility; and
- Conditional approval for an acquisition (for which the
Company's acquisition line will be utilized).
Pursuant to this approval by BMO, the net proceeds from the
Company's recently announced Rights Offering will be used to repay
a portion of both the term and revolving indebtedness outstanding
under the Company's credit facilities with BMO. "We are pleased to
have a committed and supportive partner in BMO who understands our
business goals and supports our need for financial and operational
flexibility," said Dan Ardila,
CFO, Spark Power Corp. "This will enable the Company to access the
full $35M available under our
operating and capital lines, resulting in increased liquidity to
support continued organic and acquisition-led growth," added
Ardila.
In addition, Spark Power confirms that it has entered into a
non-binding letter of intent with an independently owned company
regarding a potential significant acquisition. Spark Power
anticipates the potential transaction will be completed by
October 31, 2019. Completion of the
potential acquisition is subject to negotiation of definitive
agreements acceptable to the parties and satisfaction of all
conditions set out in the definitive agreements. Jason
Sparaga, Co-CEO of Spark Power said, "I am very excited by the
strategic fit of this potential acquisition. If completed,
this will represent Spark Power's 11th acquisition, and
will significantly expand our presence in the United States, consistent with the
Company's strategic plan."
About Spark Power Group Inc.
Spark Power Corp ("Spark Power") is the leading independent
provider of end-to-end electrical contracting, operations and
maintenance services, and energy sustainability solutions to the
industrial, commercial, utility, and renewable asset markets in
North America. We work to earn the
right to be our customers' Trusted Partner in Power™. Our highly
skilled and dedicated people, located in the communities we serve,
combined with our knowledge of the power industry, technology
expertise, and commitment to safety, ensures we deliver the right
solutions that keep our customers' operations up and running today
and better equipped for tomorrow. Learn more at
www.sparkpowercorp.com.
Forward-Looking Statements
This news release contains statements which constitute
"forward-looking information" within the meaning of applicable
securities laws, including statements regarding the plans,
intentions, beliefs and current expectations of the Company with
respect to future business activities and operating performance.
Forward-looking information is often identified by words such as
"believe", "anticipate", "project", "expect", "intend", "plan",
"will", "may", "estimate" and other similar
expressions and includes information regarding
the signing of the Amended Agreement with BMO, the
anticipated use of proceeds from the Rights Offering, and the
intention of entering into a potential acquisition. Investors are
cautioned that forward-looking information is not based on
historical fact but instead reflects management's expectations,
estimates or projections concerning 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 of the Company. Although the Company has attempted
to identify important risks, uncertainties and factors that 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.
SOURCE Spark Power Group Inc.