Finavera Renewables Inc.

Finavera Renewables Inc.

April 17, 2008 08:30 ET

Finavera Renewables Signs Agreement for $10 Million Convertible Debenture Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 17, 2008) - Finavera Renewables Inc. ('Finavera Renewables' or the 'Company') (TSX VENTURE:FVR) announces that it has signed an agreement with Trafalgar Capital Specialized Investment Fund, FIS ('Trafalgar'), to carry out a $10,000,000 unsecured convertible debenture financing. Finavera Renewables will draw down an initial $2,000,000 upon closing of the final agreement. The remaining $8,000,000 may be drawn down using either convertible or non-convertible structures as negotiated by Finavera Renewables and Trafalgar.

This convertible debenture financing will provide Finavera Renewables with the working capital required to advance the Company's projects. It will allow the Company to continue the development of its wind and wave energy projects as Finavera Renewables moves toward several key milestones. Those milestones include:

- Investigation of joint venture and various partnership opportunities as part of our financing strategy for the Company's portfolio of wind projects in Alberta, British Columbia and Ireland.

- Preparing bids to enter up to five British Columbia wind projects into the 2008 BC Hydro Clean Power Call. Up to 350 MW of clean electricity from these five projects could supply power for more than 100,000 homes.

- Completing final design for the 75 MW Ghost Pine wind project in Alberta which is in the process of submitting final environmental and development permits.

- Finalizing the technology advancement plan for AquaBuOY 3.0 wave energy technology and project development prospects.

Finavera Renewables CEO, Jason Bak, said, "We are aggressively pursuing project finance options for our renewable power projects in order to advance them towards construction and revenue generation. We are now in discussions to bring one or more equity partners directly in at the project level. The rationale for this is that we don't believe our projects are being properly valued in our share price and it makes sense to bring that equity into the projects. This financing allows us to pursue those opportunities while protecting shareholders from undue dilution."

Convertible Debenture Financing

The terms of the financing are as follows: the loan is an unsecured convertible debenture which provides for repayment over a term of 24 months; the monthly redemptions of principal, interest and redemption premium of 12.5% are to be made by issuance of the Company's shares in monthly installments, commencing four months after closing (subject to a minimum price of $0.15 per share). Interest accrues at 10% per annum, compounded monthly, and will be paid in cash during the first four months after closing. The Company may redeem in cash any amounts owed under the debenture provided the Company's shares are trading below $0.45 and that it also pays the redemption premium. Trafalgar has the right to convert amounts owed into Company shares at $0.45 provided that Trafalgar will not own more than 9.99% of outstanding shares of the Company following such conversion. Trafalgar is entitled to a one time 7% commitment fee and no commissions or sales fees are payable to any third party.

Private Placement Close

In addition to the debenture financing, the Company announces it has also raised $1,250,000 by way of the private placement previously announced on February 4th, 2008. The units consist of one common share and one-half of a share purchase warrant, with each full warrant exercisable at $0.25 for 24 months from the date of the private placement. Securities issued under this private placement are subject to a four month hold period from the date of closing. Completion of the placement is subject to final Exchange approvals. There are no commissions or finders' fees to be paid on the transaction. The majority of the placement was filled by Company board members and founders. Proceeds from these financings will be used for general working capital and the continued development of the Company's wind and wave energy assets.

Jason Bak, CEO

About Finavera Renewables Inc. (

Finavera Renewables Inc. is dedicated to the development of renewable energy resources and technologies. The Company's objective is to become a major renewable and green energy producer by developing and operating its assets in the wind and wave energy sectors. Finavera Renewables Inc. is developing wave energy conversion technology based in part upon licensed and patented 'AquaBuOY' technology designs which are based on proven buoy technology. The Company is developing wave energy projects for AquaBuOY use in the United States, South Africa and Canada. One of those projects, in California, has secured a 2 MW power purchase agreement with Pacific Gas and Electric. The Company is also developing other wind energy projects in Canada and Ireland. In Canada, a two stage 150 MW project is being developed in Alberta. Construction on this advance stage project is estimated to begin in 2008 and provides for near term revenue. In British Columbia, four projects totaling 366 MW have been entered into the provincial Environmental Assessment process, and several other sites are being developed. In Ireland, two pre-construction wind projects are under development with a potential capacity of 175 MW. Data collection and environmental studies have been continuing at a number of sites in both countries.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Statements in this news release, other than purely historical information, including statements relating to the Company's future plans, objectives or expected results, constitute forward-looking information. Such forward-looking information represents management's conclusion based on numerous assumptions and are subject to all the risks and uncertainties inherent in the Company's business, including development risks. Further information concerning such risks is set forth in the Company's formal disclosure documents filed on SEDAR, including its MD&A. Consequently, actual results may vary materially from those described in the forward-looking information.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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