VANCOUVER, BRITISH COLUMBIA / ACCESSWIRE / January 22, 2015 / P2 Solar, Inc. (the “Company” or “P2”) (PTOS) is pleased to announce today that it has signed an MOU to acquire a 9.5 MW small hydro power generation project, “Project Barkote 1”.
Barkote 1 is located in northern India and has a sister project located nearby. P2 has undertaken more than six months of due diligence working with third party engineers, accountants and lawyers to assess the project.
Raj-Mohinder Gurm, CEO, said, “We have worked closely with our engineering, legal and financial advisors to assess Barkote 1 and with the MOU we have negotiated we believe this is a tremendous step forward for P2 in terms of building our project pipeline. This project is a great addition to our hydro development projects in India that we have previously announced, Rajgarh and Tibba. We are planning to initiate construction on these two projects soon. Barkote 1 came online in April 2014 and, has since then, been generating revenue and cash flow.”
Barkote 1 is operating under a PPA (Power purchase agreement) with the state electricity company. We intend to share the project’s financial metrics in the very near future.
The MOU for acquisition enables P2 to acquire the project for a total of approximately $21 million, or $2.2 million per MWp capacity. In addition, debt financing comprising approximately $11.9 million in term loans is already in place with an India-based lender.
P2Solar CEO, Raj Gurm stated, “We have signed an MOU with an investment fund to infuse the equity capital required for the balance of the purchase price, approximately $9.1 million. The fund is already undertaking due diligence on this project and all the parties are working together to complete the process quickly.”
Mr. Gurm added, “We have significant work ahead, but progress has been excellent to date, and we look forward to further updating shareholders on our progress shortly.”
Please make note that the management team is preparing for an investor webinar. This will be scheduled in the coming days and we hope you will be able to join the call to receive additional information about the Company’s progress and coming developments.
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Safe Harbor Statement
Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, general business conditions, managing growth, and political and other business risks. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in P2 Solar, Inc.’s reports filed with the Securities and Exchange Commission. P2 Solar, Inc. undertakes no duty to update these forward-looking statements.
P2 Solar, Inc.
SOURCE: P2 Solar, Inc.