The financing will be used to fund the development costs of Wind Works’ existing projects in Ontario plus new projects that may be acquired during the term of the financing.
The company’s seven existing projects totaling 80MW in Ontario have secured FIT contracts.
Wind Works said the $15m financing is a convertible debenture facility with a Maturity Date of 31 January 2013, and both interest and principal are due at Maturity.
On 5 May 2011, Wind Works gave notice terminating the asset purchase agreement with Premier Renewable Energy.
The agreement contemplated the sale of five wind energy projects in Ontario totaling 50MW.
Under the deal, Premier was obligated to pay certain development costs which they failed to do.
The agreement was therefore terminated for cause and Works has returned to Premier a total of $950,000 representing the amount of the refundable deposit.
The $15m financing will be used by the company to develop the 50MW that were subject to the proposed sale to Premier.
