Transeastern Power Trust

Transeastern Power Trust

February 01, 2016 09:25 ET

Transeastern Power Trust Announces Proposed Acquisition of Wind Renewable Energy Project

TORONTO, ONTARIO--(Marketwired - Feb. 1, 2016) - Transeastern Power Trust ("Transeastern" or the "Trust") (TSX VENTURE:TEP.UN)(TSX VENTURE:TEP.DB) is pleased to announce that it has entered into a letter of intent for the proposed acquisition of a 17 MW operational wind project (the "Wind Project") located in Romania. The Wind Project has been in operation since 2012, has an off-take agreement in place, and generates approximately 45,000 MWh of electricity annually.

The purchase price of the Wind Project is EUR20,400,000 (Cdn.$30,600,000) less the amount of debt financing on the Wind Project as at the closing date. The net purchase price shall be payable as to 50% by way of an interest free vendor-take-back loan with the remaining 50% payable by the issuance to the vendor of a combination of units of the Trust at a deemed issuance price of Cdn.$1.00 per Unit and 7.5% convertible unsecured debentures of the Trust governed by the debenture indenture of the Trust dated May 28, 2014. The vendor of the Wind Project is RG Renovatio Group Limited which currently owns greater than 10% of the outstanding units of the Trust.

The acquisition is subject to the satisfactory completion by the Trust of technical and legal due diligence, the execution of a binding acquisition agreement and the satisfaction of applicable conditions precedent. The proposed acquisition is expected to close by May 31, 2016. The Trust shall provide further details upon the closing of the acquisition.

J. Colter Eadie, Chief Executive Officer of Transeastern commented "The acquisition of the Wind Project is transformational for the Trust and is a major step forward in our diversification and expansion across generation types and capacity. This acquisition will more than double the annual power generation of the Trust. We are very pleased by the major commitment exhibited by the vendor which is subscribing to our business model as evidenced by agreeing to take a substantial component of its economic consideration in the form of units and other securities of the Trust."

About Transeastern

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

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 management discussion and analysis dated November 27, 2015, a copy of which is available on Transeastern's SEDAR profile at 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.

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