OSLO: Cloudberry Clean Energy AS is contemplating to raise gross proceeds of between NOK 300 and NOK 500 million by issuing new shares in the Company through an accelerated bookbuilding process.
Cloudberry Clean Energy AS has retained Carnegie AS and Pareto Securities AS as Joint Lead Managers and Joint Bookrunners to advise on and effect a contemplated private placement directed towards Norwegian and international investors.
Cloudberry intends to use the net proceeds from the Private Placement to realize the Company’s near-term growth opportunities, as well as for general corporate purposes. The Growth Opportunities include a wind farm investment and the acquisition of five hydro power assets, which require equity financing, in addition to an in-house developed shallow water windfarm.
Wind farm investment and acquisition of hydro power assets in Norway Cloudberry has entered a share purchase agreement for the acquisition of up to 33.4% of the shares in Odal Vindkraftverk AS with an estimated equity requirement of up to NOK 359 million for completion of construction.
The Odal Windfarm is developed together with experienced partners KLP and Akershus Energi, and Cloudberry will add value as a financial sponsor and industrial partner in the project.
Commenting on Cloudberry’s participation, Eskil Lunde Jensen, CEO at Akershus Energi says: “We are pleased to welcome Cloudberry as a partner in the project. With their industrial perspective and existing investments in wind power and hydropower, Cloudberry will increase the total competence and contribute valuable experience to the partnership”.
Furthermore, Cloudberry intends to acquire five Norwegian hydro power assets with an estimated equity consideration of NOK 121 million. The Company has secured exclusivity to acquire the hydro power assets, and targets to agree and execute customary transaction documents before year end 2020.
In-house development of shallow water windfarm in Sweden In addition, following the conditional sale of 80% of a 100 MW near-shore shallow water windfarm at Vänern, Sweden to Downing LLP, the Company intends to retain a 20% paying interest in the project developed in-house by Cloudberry.
CEO Cloudberry commented, “Cloudberry is on a growth journey in the Nordic wind and hydro power market. We started the year with an annual net production capacity of 11 GWh, and today we have a net secured production of 160 GWh. By realising our growth opportunities in Odal Windfarm, the hydro assets and Vänern, we will approximately triple our net secured production, taking the figure to 449 GWh”, says Anders Lenborg, CEO of Cloudberry.
Cloudberry has secured NOK 237 million in available funds through a credit facility provided by Fontavis at attractive terms, which enables it more flexibility with regards to financing of the Growth Opportunities.
With the credit facility fully drawn, Cloudberry will have sufficient cash on its balance sheet to finance the Growth Opportunities at the minimum Private Placement transaction size of NOK 300 million.
The final number of Offer Shares to be issued in the Private Placement and the subscription price for the Offer Shares will be determined by the Board and requires approval from an Extraordinary General Meeting (EGM).
The Company may, subject to completion of the Private Placement, and certain other conditions, propose to carry out a subsequent offering of new shares which, subject to applicable securities law, will be directed towards existing shareholders in the Company as of 11 December 2020
Cloudberry Clean Energy AS is a Nordic renewable energy company, owning, developing, and operating hydro power plants and wind farms in Norway and Sweden.
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