PRZOOM - /newswire/ -
Toronto, Ontario, Canada, 2009/12/24 - Atlantic Wind and Solar, Inc. (Pinksheets: AWSL - News) is pleased to announce that it has closed a financing whereby it will issue 1,000,000 Series A 12.00% Convertible Preferred Shares having a par value of $1.00 and quarterly interest payments.
The proceeds of the $1,000,000 financing will be used to fund Atlantic Solar Inc.'s joint venture with a prominent Toronto-area developer as previously announced. (Atlantic Solar Inc. is a wholly-owned subsidiary of Atlantic Wind & Solar Inc.) The Preferred shares will be convertible into common shares of AWSL at $3.50 per share anytime before January 1, 2011, after which time it will convert at $4.00 per share anytime before January 1, 2012, after which it will convert at $5.00 per share common shares. The Series A 12.00% Convertible Preferred shares are exercisable at the holder's discretion at any time up to January 1, 2014.
The Atlantic Solar Inc. Joint Venture Project
As announced in mid-December the joint venture agreement encompasses the installation of several rooftop solar projects in Ontario up to 250kw in size. These will require the installation of up to $15 million of Hybridyne Power Systems Canada Inc.'s renewable energy systems on the various facilities. The purchase and installation of these renewable energy systems will be financed by a 50/50 joint venture between the two groups through a Limited Liability Partnership (LLP).
A Long Term Revenue Stream
These initial roof top solar power systems will generate in excess of 1.25 MW (peak) of power and will generate a 20 year revenue stream calculated in excess of $33 million. Upon issuance of the Ontario Power Authority contract this revenue will be guaranteed by the OPA under its Feed in Tariff program. The partners will share equally in the revenues from these projects.
AWSL Solar Projects Funded
This latest financing of $1,000,000, through the issuance of convertible preferred shares, follows the financing commitment of up to $2,500,000 through the Private Placement, in stages, of common shares announced on November 23, 2009. Together, these financing arrangements will fund the advancement of several solar projects announced by AWSL and its subsidiary and/or affiliated companies since Ontario's lucrative Feed in Tariff was introduced last fall to encourage Renewable Energy investment in the Province.
About Atlantic Wind & Solar, Inc.
Through focused management, strong R&D, state-of-the-art proprietary technology, exclusive licenses, and joint ventures, Atlantic Wind & Solar, Inc. (atlanticwindandsolar.com) is poised for rapid growth at the forefront of the massive global shift towards environmentally friendly, economical Renewable Energy. The Company is working with parties in the Real Estate and Property Management sectors in Ontario to secure rooftop leases suitable for AWSL's photovoltaic (PV) renewable energy system.
Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities.
The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.