Maxim Power Corp. Reports Continued Strong Earnings with $84 million of Revenue and $25 million of Net Income in the First Six Months of 2022 - Seite 3

MAXIM has commenced the commissioning process in the third quarter of 2022 and anticipates that the plant will commence commercial operations in December of 2022. MAXIM believes strongly that this asset will be a top performing facility in the Alberta power market.

At this time, MAXIM forecasts it has sufficient liquidity to complete the CCGT expansion of M2 and will fund the project using cash on hand, cash flow from operating revenues, grant funding and available funds through the existing senior and subordinated credit facilities, as required.

$20 MILLION GRANT FUNDING

On July 14, 2022, the Corporation, through a wholly-owned subsidiary, entered into an agreement to receive grant funding in the amount of $20 million. The Corporation’s CCGT expansion of M2 captures waste heat that would otherwise exhaust into the atmosphere and will turn it into useful low carbon electricity for the Alberta power grid. As of this date, all of the proceeds from the grant have been received and will be used as funding for the CCGT expansion of M2, which is anticipated to be operational by December 2022.

AMENDMENT TO SENIOR CREDIT FACILITY

In June 2022, MAXIM amended the terms of its senior credit facility to allow for an increase to its normal course issuer bid (“NCIB”) limitations from $1.0 million to $2.5 million for the 2022 calendar year. Additionally, MAXIM recommenced repayments of its $28.5 million Bank Term Facility #1, under the senior credit facility, in the amount of $0.7 million quarterly. The first quarterly payment occurred on August 2, 2022, followed by regular quarterly payments commencing at the end of the third quarter 2022.

NORMAL COURSE ISSUER BID

MAXIM continues its NCIB program for the August 25, 2021 to August 24, 2022 period. Under this NCIB, MAXIM may purchase for cancellation up to 2,400,000 common shares of the Corporation. Collectively under this program and as of June 30, 2022, the Corporation has repurchased and cancelled 277,285 common shares for $1.1 million, of which 266,370 common shares were repurchased and cancelled in 2022 for $1.0 million. MAXIM’s NCIB program is limited to $2.5 million for the 2022 calendar year under the senior credit facility. Any excess is subject to approval from the lenders under the senior credit facility.