Press release from Business Wire
Capstone Infrastructure Corporation and Renewable Energy Developers Inc. Set Closing Date and Announce Third Quarter Dividend for ReD Shareholders
Friday, September 20, 2013
Capstone Infrastructure Corporation and Renewable Energy Developers Inc. Set Closing Date and Announce Third Quarter Dividend for ReD Shareholders20:05 EDT Friday, September 20, 2013
TORONTO, Ontario (Business Wire) -- Capstone Infrastructure Corporation (“Capstone”) (TSX: CSE; CSE.PR.A; CSE.DB.A) and Renewable Energy Developers Inc. (“ReD”) (TSX: RDZ) are pleased to advise that the previously announced plan of arrangement pursuant to which, among other things, Capstone will acquire all of the issued and outstanding common shares of ReD (the “Arrangement”) is expected to close on October 1, 2013.
In light of such expectation, ReD will increase its regular quarterly dividend for the third quarter of 2013 to $0.0195 per common share to correspond to what ReD shareholders would have received from the merged company if the Arrangement closed on September 30, 2013. The dividend will be paid on October 31, 2013 to ReD's shareholders of record at the close of trading on September 30, 2013. The dividends paid by ReD on its common shares are designated "eligible" dividends for purposes of the Income Tax Act (Canada). An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.
A consent agreement giving effect to the foregoing has been entered into by Capstone and ReD and will be filed under each of Capstone's and ReD's profiles at www.SEDAR.com.
Capstone Infrastructure Corporation
Capstone's mission is to build and responsibly manage a high quality portfolio of infrastructure businesses in Canada and internationally in order to deliver a superior total return to shareholders by providing reliable income and capital appreciation. Capstone's portfolio currently includes investments in gas cogeneration, wind, hydro, biomass and solar power generating facilities, representing approximately 370 MW of installed capacity, a 33.3% interest in a district heating business in Sweden, and a 50% interest in a regulated water utility in the United Kingdom. For more information, please visit www.capstoneinfrastructure.com.
Renewable Energy Developers Inc.
ReD is dedicated to the development, ownership and operation of renewable energy projects. Through project development efforts, acquisitions, partnerships and joint ventures, ReD provides its shareholders with income and growth from the renewable power generation sector of the energy industry. For more information, please visit www.red-inc.ca.
Notice to Readers
Certain information presented in this news release contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this news release. Forward-looking statements are provided for the purpose of presenting information about Capstone's and ReD's management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements use forward-looking words, such as “anticipate”, “continue”, “could”, “expect”, “may”, “will”, “estimate”, “plan”, “believe” or other similar words, and include, among other things, statements concerning the timing and implementation of the Arrangement. These statements are subject to known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results. The forward-looking statements within this document are based on information currently available and what Capstone and ReD currently believe are reasonable assumptions, including the material assumptions set out in Capstone's and ReD's most recent interim and annual financial statements and management's discussion and analysis of the results of operations and the financial condition of Capstone and ReD filed on www.sedar.com.
Although Capstone and ReD believe that they have a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons, including the conditions of the Arrangement not being satisfied. Additional information regarding such risks and uncertainties is provided under the heading “Risk Factors” in the management information circular of Capstone dated August 2, 2013 and under the heading “The Arrangement – Risks Associated with the Arrangement” in the management information circular of ReD dated August 1, 2013 filed on www.sedar.com.
The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. The forward-looking statements within this news release reflect current expectations of Capstone and ReD as at the date of this document and speak only as at the date of this document. Except as may be required by applicable law, Capstone and ReD do not undertake any obligation to publicly update or revise any forward-looking statements.
The securities described herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale or issuance of these securities in any jurisdiction in which such offer, solicitation, issuance or sale would be unlawful.
This document is not an offer or invitation for the subscription or purchase of or a recommendation of securities. It does not take into account the investment objectives, financial situation and particular needs of any investors. Before making an investment in Capstone or ReD, an investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult an investment adviser if necessary.
Capstone Infrastructure Corporation
Sarah Borg-Olivier, 416-649-1325
Senior Vice President, Communications
Renewable Energy Developers Inc.
Jeff Jenner, CA, CBV, 647-476-7580
President and Chief Executive Officer