VANCOUVER, BRITISH COLUMBIA — 02/19/15 — P2 Solar, Inc. (the “Company” or “P2”) (OTCPK: PTOS) is able to announce today that it has signed an agreement to acquire a 5 MW small hydro power generation project, “Project Barkote 2”.
Barkote 2 is located in northern India and has a sister project located nearby for which P2 announced an acquisition agreement on January 22, 2015. Raj-Mohinder Gurm, CEO, said, “We are very pleased to announce the acquisition of Barkote 2. This project is indicative of P2 Solar’s plan to expand our project pipeline, along with the announcement to acquire Barkote 1 and project Rajgarh and Tibba. We are very excited to build this momentum on a foundation of solid projects”
It is noteworthy that Barkote 2, as with Barkote 1, is a fully operational project – it has been generating power since September 2014, is connected to the grid, and has a 35 year power purchase agreement with the state electricity distribution authorities. As with Barkote 1, term debt for Barkote 2 is already in place with a major Indian bank. The total purchase price comprises approximately $11.2 million, including term debt of $4.7 million and equity of $6.5 million.
P2 has signed an MOU for equity funding with the same entity as for Barkote 1 and they have commenced their due diligence. The goal is to complete this process and close on both projects simultaneously.
Please make note that management is preparing for an investor webinar to discuss these and other company developments. This will be scheduled in the coming days and we hope you will join the call to receive additional information about the Company’s progress.
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.