Under the terms of the agreement, Pattern is expected to pay $9.3m upon securing approval from shareholders and on the completion of the acquisition. The remaining amount can be paid when projects proceed to construction financing.
Commenting on the sale, Finavera CEO Jason Bak noted that the deal represents strong returns on investment made on the projects, besides financing the company’s next stage of growth.
"The incoming cash will be used to pay down debt, aggressively manage our burn rate, and embark on a fiscally prudent review of opportunities in the marketplace within the next 2 to 6 months," added Bak.
Further, the company has also sought credit facility from Pattern at a rate of 10% per annum, subject to shareholder approval.
Finavera is currently working on its 105MW Cloosh Valley onshore wind project in Ireland and expects to secure financing and commence pre-construction activities in the fourth quarter of 2013.
