Vancouver, Canada, May 1st, 2012 – Finavera Wind Energy Inc. (‘Finavera Wind Energy’ or the ‘Company’) (TSX-V: FVR) announces its 2011 year-end financial results and provides a corporate update for shareholders.
Finavera Wind Energy CEO Jason Bak said, “Finavera continues to build substantial value in its core assets and the Company believes the current value of these projects is substantially greater than the Company’s current market capitalization. These assets include four 25 year power purchase agreements with BC Hydro that will generate approximately $1 billion dollars in revenue over their lifetime. The great success of receiving an Environmental Assessment Certificate for the Tumbler Ridge Wind Energy Project validates the efforts of our development team and provides the basis for future permitting work.”
“We are currently assessing the financing options for each of our British Columbia projects. These options include joint ventures, 100% equity opportunities with an on-going carried interest, the sale of a project, or arranging third party project finance. Extensive discussion and negotiations have occurred with a number of prospective financial partners involved in the banking and energy sectors and we are highly confident of completing the financing option that is in the best interest of our shareholders, in a timely manner. The Company will disclose its preferred finance options for each Project once binding agreements have been executed,” Bak concluded.
Summary of Financial Results
In 2011, the Company incurred a net loss of $3,240,975. This compares to net income in the prior year of $1,638,177, a difference of $4,879,152. The difference was mainly the result of changes in three primary items. First, during 2010, the Company recorded income of $3,110,673 from discontinued operations. The income was due to a gain recorded as a result of writing off debts in a subsidiary when it was disposed of. Second, also in 2010, the Company recorded a gain on the disposal of Cloosh Valley Wind Project of $1,408,283 as a result of receiving the first €1,260,000 ($1,696,590) instalment, out of a total purchase price of €8,400,000 (approximately $11,000,000), with the final payment to be received on financial close of the project. And third, in 2011 the Company entered into a settlement agreement with a creditor of a former subsidiary in the amount of $960,983 to settle a longstanding dispute. Consequently, all other net expenses totalled $2,279,992 in 2011 compared to $2,880,779 in 2010, a decline of 21%. In 2011, the Company incurred BC wind project development costs of $6,477,802, compared to $5,170,321 in 2010. To date, the Company has incurred total BC Project costs of $17.2 million.
This financial summary should be read in conjunction with the Company's December 31, 2011 financial statements and Management's Discussion and Analysis, both of which are available on www.sedar.com.
Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. The words “would”, “will”, “expected” and “estimated” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."