Northland Announces Sale of La Lucha Solar Facility

TORONTO, March 04, 2024 (GLOBE NEWSWIRE) -- Northland Power Inc. (Northland) (TSX: NPI) announced today it has entered into an agreement to sell the La Lucha solar facility to Cometa Energía, S.A. de C.V., wholly owned by Saavi Energía (Saavi). La Lucha is a 130-megawatt solar facility located in Durango, Mexico that is wholly owned by Northland. The facility achieved commercial operations in June 2023.

“This transaction reflects Northland’s strategy to recycle assets from non-core markets to generate liquidity and simplify our overall business towards operating in core markets,” said Mike Crawley, President and Chief Executive Officer of Northland.

The sale is expected to close in 2024, upon satisfaction of customary closing conditions, including finalizing insurance placement, lender approval and approval of the Federal Economic Competition Commission (COFECE), required under applicable anti-trust laws in Mexico. Northland expects to receive approximately $205 million in cash after taxes, transaction fees and other customary adjustments. Proceeds will be initially used towards repayment of amounts drawn on the Company’s revolving credit facility and for general corporate purposes.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that are provided for the purpose of presenting information about management’s current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, the events anticipated by the forward-looking statements may or may not transpire or occur. Forward-looking statements include statements that are not historical facts and are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” These statements may include, without limitation, statements regarding the closing of the La Lucha transaction, the amount and use of proceeds, and the anticipated satisfaction of closing conditions. There is a risk that delay or failure to achieve the foregoing could affect Northland’s earnings, cash or credit position and capital funding needs. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the provisions of contracts to which Northland or a subsidiary is a party, management’s current plans, current conditions and expected future developments, the ability to obtain necessary approvals, satisfy any closing conditions, satisfy any project finance lender conditions to closing sell-downs, as well as other factors, estimates and assumptions that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management’s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors include, but are not limited to, risks associated with sales contracts, the emergence of widespread health emergencies or pandemics, counterparty risks, Northland’s ability to resolve issues/delays with the relevant regulatory and/or government authorities, disposition risk, international activities, cybersecurity, data protection and reliance on information technology, reputational risk, bribery and corruption risk, terrorism and security, legal contingencies, and the other factors described in the “Risks Factors” section of Northland’s Management’s Discussion and Analysis and Annual Information Form for the year ended December 31, 2023, which can be found at www.sedarplus.ca under Northland’s profile and on Northland’s website at northlandpower.com. Northland has attempted to identify important factors that could cause actual results to materially differ from current expectations, however, there may be other factors that cause actual results to differ materially from such expectations. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, and Northland cautions you not to place undue reliance upon any such forward-looking statements.