Northland Power has established an at-the-market (ATM) equity programme to raise finance from the sale of shares to fund growth projects and for general corporate purposes.
The programme allows the company to issue up to $500m (€451.3m) of common shares from treasury to the public from time to time, at the company’s discretion.
Any common shares sold in the scheme will be sold through the Toronto Stock Exchange or any other marketplace on which the common shares are listed, quoted or otherwise traded at the prevailing market price at the time of sale.
The initiative provides Northland with additional financing flexibility to fund its growth initiatives should it be required or desirable in the future.
The volume and timing of distributions, if any, will be determined at Northland’s sole discretion.
The company is not obligated to make any sales of common shares under the proposals.
The scheme will be effective until the earlier of 16 July 2023 and the date that all of the common shares issuable have been issued, unless terminated prior to such date by the company or the agents.
This is in accordance with the terms of the equity distribution agreement dated 1 March between the Company and CIBC Capital Markets, National Bank Financial, BMO Nesbitt Burns, Desjardins Securities, RBC Dominion Securities, TD Securities and Scotia Capital.
As common shares sold will be distributed at prevailing market price at the time of the sale, prices may vary among purchasers during the period of the distribution.
Northland’s chief financial officer Pauline Alimchandani said: “As a growth company with a significant pipeline of development projects, Northland is committed to unlocking value by deploying capital to advance our growth projects.
“Our funding plan, as disclosed within our most recent Investor Day held on February 8th, provides for flexibility to access various sources of capital pools to fund the financial close equity requirements for our projects, both at the corporate and project level.
“The ATM Program provides another source of funding to further enhance our flexibility.”