The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Shear Wind Shareholders Approve Plan of Arrangement and Sprott Power Extends Initial Maturity Date of Convertible Debentures to Allow for Closing

Tuesday, October 09, 2012

Shear Wind Shareholders Approve Plan of Arrangement and Sprott Power Extends Initial Maturity Date of Convertible Debentures to Allow for Closing17:00 EDT Tuesday, October 09, 2012/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/TORONTO, Oct. 9, 2012 /CNW/ - Sprott Power Corp. (TSX: SPZ) ("Sprott Power") and Shear Wind Inc. (TSXV: SWX) ("Shear Wind") are pleased to announce that at the annual and special meeting of Shear Wind shareholders (the "Shareholders") held today, the Shareholders overwhelmingly approved the previously announced plan of arrangement (the "Arrangement") whereby Sprott Power will acquire all of the issued and outstanding shares of Shear Wind.The resolution approving the Arrangement was approved by approximately 99.97% of the votes cast by Shareholders present in person or represented by proxy at the meeting, and approved by approximately 99.55% of the votes cast by minority Shareholders present in person or represented by proxy at the meeting. On the effective date of the Arrangement, Sprott Power will acquire each Shear Wind common share (the "Shear Wind Shares") for cash consideration of $0.2213, plus an amount equal to: (i) the sum of the amount of any non-refundable cash deposit received by Shear Wind in respect of a proposed sale of the Willow Ridge prospective project (the "Willow Ridge Project"), which sale has not occurred, and the remaining cash deposit made by Shear Wind in connection with the Willow Ridge Project, (ii) less all taxes, costs and expenses; divided by the aggregate number of Shear Wind Shares issued and outstanding.The Arrangement remains subject to, among other things, the final approval of the Supreme Court of Nova Scotia. The hearing for the final court order to approve the Arrangement is scheduled to take place on October 10, 2012, with the effective date of the Arrangement expected to occur in mid-October 2012.Full details regarding the terms of the Arrangement are set out in the management information circular of Shear Wind dated September 5, 2012 which is available on SEDAR at www.sedar.com. Further details of the Arrangement are disclosed in the August 8, 2012 joint press release also available on SEDAR.In conjunction with the Arrangement, Sprott Power completed an offering of $34,500,000 aggregate principal amount of extendible convertible unsecured subordinated debentures (the "Debentures"). The Debentures have an initial maturity date of October 15, 2012. In order to ensure sufficient time to receive all necessary consents to the Arrangement, Sprott Power has elected to exercise its option to extend the initial maturity date to December 31, 2012, which will automatically be extended to December 31, 2017 upon completion of the Arrangement.Neither 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 press release.About Sprott Power Corp.Sprott Power is a publicly-traded Canadian-based company dedicated to the development, ownership and operation of renewable energy projects. Through project development efforts, acquisitions, partnerships and joint ventures, Sprott Power provides its shareholders with income and growth from the renewable power generation sector of the energy industry.About Shear WindFounded in 2005, Shear Wind is headquartered inBedford, Nova Scotia and is engaged in the exploration and development of renewable wind energy properties in Canada.Forward-Looking InformationThis press release contains forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by looking for words such as "about", "approximately", "may", "believes", "expects", "will", "intend", "should", "plan", "predict", "potential", "project", "anticipate", "estimate", "continue" or similar words or the negative thereof or other comparable terminology. Such forward-looking information includes, without limitation, statements with respect to the anticipated closing of the Arrangement. The forward-looking information is based on certain key expectations and assumptions made by Sprott Power and Shear Wind, including expectations and assumptions concerning satisfaction of all conditions of closing and absence of exercise of any termination right. Although Sprott Power and Shear Wind believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that they will prove to be correct. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, failure to close the Arrangement and other risks generally attributable to the business of Sprott Power and Shear Wind. For additional information with respect to risks and uncertainties, refer to the risks listed under the headings "Risk and Uncertainties" in Sprott Power's management's discussion and analysis of financial results for the period ended December 31, 2011, "Appendix B - Risk Factors" in Sprott Power's annual information form dated March 26, 2012, and "Risks and Uncertainties" in Shear Wind's management discussion and analysis for the six months ended June 30, 2012. The forward-looking information is made as of the date of this press release and neither Sprott Power nor Shear Wind assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.SOURCE: Sprott Power Corp.For further information: Jeff Jenner, CA, CBV President and Chief Executive Officer Sprott Power Corp. 416-943-6387 jjenner@sprottpower.com Babak Pedram Investor Relations TMX Equicom 416-815-0700 ext. 264 bpedram@equicomgroup.com  Mike Magnus President and Chief Executive Officer Shear Wind Inc. 902-444-7420 mmagnus@shearwind.com