Maxim Power Corp.
TSX : MXG
October 05, 2006 10:32 ET
Maxim Power Corp. Announces Appointment of Wiley Auch as a Director, a Normal Course Issuer Bid and Closing of CDECCA
CALGARY, ALBERTA--(CCNMatthews - Oct. 5, 2006) -
Appointment of New Director
Maxim Power Corp. (TSX:MXG) ("MAXIM") is pleased to announce that Mr. Wiley Auch, CA has been appointed to the Board of Directors of the Corporation. In addition, Mr. Auch has been appointed to the Audit and Risk Management Committee of the Board, and he has agreed to serve as Chairman of that committee. Mr. Auch is currently Vice-President, Finance and Chief Financial Officer of Gibraltar Exploration Ltd., a private natural gas exploration and production company. In his position with Gibraltar, Mr. Auch has senior management responsibilities for corporate finance, financial reporting, treasury, tax and planning. Mr. Auch also served as a financial advisor to Enron Canada from March, 2002 to March, 2004, and was Managing Director and CFO of FirstEnergy Capital Corp. from 1993 to 2001. Prior to 1993, Mr. Auch was with Pricewaterhouse Coopers, LLP Chartered Accountants. With Mr. Auch's extensive background and experience, we look forward to his participation in MAXIM's growth and development.
Concurrent with Mr. Auch's appointment, Mr. Jeff Lawson has resigned as a Director of the Corporation. However, Mr. Lawson, a Partner of the law firm of Burnet, Duckworth & Palmer, LLP, will continue to serve as General Counsel to the Corporation.
Normal Course Issuer Bid
MAXIM also wishes to announce that the Toronto Stock Exchange (the "Exchange") has accepted the notice filed by MAXIM of its intention to make a normal course issuer bid.
Pursuant to the bid, MAXIM may, during the 12 month period commencing on October 10, 2006, purchase up to approximately 5% of the issued and outstanding Common Shares in the capital of the Corporation or up to 2,190,000 Common Shares. There is currently a total of 43,919,973 Common Shares issued and outstanding. The bid will terminate on October 9, 2007, or such earlier time as the bid is completed or terminated at the option of MAXIM. In this regard, Management has been authorized to purchase 2,190,000 Common Shares. Shares will be purchased through the facilities of the Exchange at the prevailing current market price, and such shares will be cancelled and returned to treasury. The actual number of Common Shares to be purchased and the timing of any purchases will be at MAXIM's discretion.
MAXIM believes that the current trading value of its Common Shares does not reflect the underlying value of its shares. Further, the acquisition of Common Shares at current market values would represent an appropriate use of MAXIM's cash resources, and such purchases would enhance shareholder value.
Acquisition of a 67 MW Power Plant
On October 1, 2006, MAXIM closed the acquisition of the Capitol District Energy Center Cogeneration Associates ("CDECCA") Power Plant, a 67 Megawatt ("MW") natural gas fired combined cycle cogeneration plant located in Hartford, Connecticut, USA. CDECCA provides peaking energy to the New England power market. It also provides steam and chilled water to a major commercial customer and to the Hartford Capital District heating network. The CDECCA plant was acquired for nominal cash consideration along with the assumption of various contractual obligations.
Based in Calgary, Alberta, MAXIM is an Independent Power Producer, which acquires or develops, owns and operates innovative and environmentally responsible power projects. MAXIM owns and operates 23 power plants in Western Canada, United States, and France, having 437 MW of electric and 60 MW of thermal net generating capacity. MAXIM will continue to execute on its strategy as an Independent Power Producer and is targeting significant growth through acquisitions and development of power projects which utilize hydrocarbon based fuels and renewables in the markets of Western Canada, United States and France. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at www.maximpowercorp.com.
Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the press release.