Transeastern Power Trust Announces Completion of OMV Wind Farm Acquisition
TORONTO, ONTARIO–(Marketwired – Dec. 28, 2017) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Transeastern Power Trust* (“Transeastern” or the “Trust”) (TSX VENTURE:TEP.UN)(TSX VENTURE:TEP.DB) is pleased to announce that it has completed the previously announced acquisition of a 45 MW wind farm located in the Dobrogea Region, Romania (the “OMV Wind Project“) by acquiring the outstanding balance of shareholder loans and the issued and outstanding common shares in the capital of OMV Petrom Wind Power SRL from OMV Petrom SA. The acquisition was completed using $23 million of short-term bridge financing and EUR2.8 million from the vendor of the OMV Wind Project, which will be repaid out of the proceeds of the previously announced $40 million private placement scheduled to close in the first week of January.
Mr. J. Colter Eadie, Chief Executive Officer of Transeastern, commented “as we move from a renewable energy utility model to a vertically integrated cryptocurrency mining operation we believe we are pioneering a new and robust business model. We are well positioned to power our mining operations primarily through clean energy generated at our own operations at nominal cost augmented by revenue from green certificates earned through the generation of renewable energy. We believe that this is an environmentally sustainable model for cryptocurrencies and one that will allow us to operate profitably in many cryptocurrency pricing environments. We look forward to leveraging our knowledge of renewable energy operations and experience with delivering large scale infrastructure projects to execute our leading-edge cryptocurrency strategy.”
*Transeastern Power Trust anticipates changing its name to Blockchain Power Trust concurrently with the closing of its previously announced private placement.
The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on solar and hydro power. The Trust intends to qualify as a “mutual fund trust” under the Income Tax Act (Canada) (the “Tax Act”). The Trust will not be a “SIFT trust” (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any “non-portfolio property” (as defined in the Tax Act). All material information about the Trust may be found under Transeastern’s issuer profile at www.sedar.com.
Forward-Looking Statements Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the energy law, expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, high inflation rates, failure to obtain bank financing, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), risks related to seasonality (including adverse weather conditions, shifting weather patterns, and global warming), a shift in energy trends and demands, a shift in energy generation in the European Union, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to Transeastern and its business are discussed under the heading “Risks and Uncertainties” in Transeastern’s annual management’s discussion & analysis dated May 3, 2017, a copy of which is available on Transeastern’s SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Transeastern expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
+1 (647) 987-7663
J. Colter Eadie
Chief Executive Officer
+ 351 938 810 979
Chief Financial Officer
+1 (416) 625-5064