Jade Power Announces Closing of the Sale of its Renewable Energy Asset Portfolio; Update on Unit Distributions; Movement to NEX Board

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TORONTO, Nov. 22, 2022 (GLOBE NEWSWIRE) — Jade Power Trust (“Jade Power” or the “Trust”) (TSXV: JPWR.UN) is pleased to announce the closing of its previously announced sale transaction of all of its renewable energy operating assets (the “Sale Transaction”) to Enery Power Holding GmbH (“Enery”), an Austrian-based renewable energy company with operations throughout the Czech Republic, Slovakia and Bulgaria, and an affiliate thereof (the “Purchaser”), pursuant to the terms and conditions set out in the share sale agreement (the “Purchase Agreement”) dated September 1, 2022 entered into among the Trust, Enery, the Purchaser and certain subsidiaries of the Trust. The parties to the Sale Transaction act at arm’s length.

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Purchase Price

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The net cash payment paid by the Purchaser to the Trust at the closing of the Sale Transaction was approximately Euro 66 million (approximately CDN$90.93 million¹), of which Euro 4.0 million (approximately CDN$5.51 million) (the “Indemnity Escrow Amount”) has been deposited into escrow to cover certain potential claims by the Purchaser for a period of (i) up to 180 days following the closing of the Sale Transaction with respect to up to Euro 1.0 million of the Indemnity Escrow Amount; and (ii) up to one (1) year from the closing of the Sale Transaction with respect to the remaining Euro 3.0 million of the Indemnity Escrow Amount. The quantum of the Indemnity Escrow Amount to be released from escrow will be distributed to Unitholders in due course; however, there can be no certainty as to the quantum of the Indemnity Escrow Amount once released. The cash closing payment represents an aggregate purchase price of Euro 70,317,943 (as compared to Euro 70,301,000 as reported in the Trust’s management information circular dated September 21, 2022), subject to certain adjustments as provided in the Purchase Agreement.

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Update on Unit Distributions

As previously announced, it is the intention of the Trust to distribute all of the net proceeds received from the Sale Transaction, together with any existing working capital less certain necessary holdbacks for tax and operating and maintenance expenses of the Trust, to Unitholders in three or more special distributions (each, a “Special Distribution”). The exact amount and payment date of the initial Special Distribution and the record date for the determination of the Unitholders entitled to receive the Special Distributions is expected to be announced by the Trust prior to the end of November once the exact value of the initial Special Distribution has been determined after taking account applicable exchange rates and transaction costs.

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As the expected value of the initial Special Distribution will be greater than 25% of the value of the Units on the date the initial Special Distribution is declared, the payment of the initial Special Distribution will be subject to compliance with the “due bill” trading requirements of the TSX Venture Exchange (the “TSXV”) under TSXV Policy 3.2. Specifics about the due bill trading period attaching to the Units in connection with the payment of the initial Special Distribution will be announced when the Trust discloses the details of the Special Distribution noted above. The terms of the initial Special Distribution are subject to the approval of the TSXV.

Movement to NEX Board

The Trust has also been advised by the TSXV that the listing of the Units will be transferred to the NEX Board (“NEX”) of the TSXV as a result of the Trust no longer meeting certain of the TSXV’s continuous listing requirements following the closing of the Sale Transaction. The trading of the Units on NEX is to become effective at the opening of trading on or about November 25, 2022.

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A copy of the Purchase Agreement is available at www.sedar.com.

For further information, please contact:

About Jade Power

The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust intends to qualify as a “mutual fund trust” under the Income Tax Act (Canada) (the “Tax Act”). The Trust will not be a “SIFT trust” (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any “non-portfolio property” (as defined in the Tax Act). All material information about the Trust may be found under Jade Power’s issuer profile at www.sedar.com.

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Forward-Looking Statements

Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. The forward-looking statements included in this press release, including statements regarding the Sale Transaction, the release of the Indemnity Escrow Amount and the ultimate amounts and timing of the Special Distributions payable to Unitholders upon closing of the Sale Transaction. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Trust’s control. Such risks and uncertainties include but are not limited to: risks that the Sale Transaction and transfer of the Units to NEX may have negative impacts on the market price and liquidity of the Units; risks related to the diversion of management’s attention from the Trust’s ongoing business operations; risks related to the Trust’s strategy going forward; risks related to the COVID-19 pandemic and ongoing Russia-Ukraine conflict; foreign exchange risk; risks related to the potential loss of the Trust’s status as a “mutual fund trust” following the Special Distributions; and other risks inherent to completing a cross-border transaction of this nature. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Readers are cautioned that the foregoing list of factors is not exhaustive.

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Details of additional risk factors relating to the Trust and its business, generally, are discussed under the heading “Business Risks and Uncertainties” in the Trust’s annual Management’s Discussion & Analysis for the year ended December 31, 2021, a copy of which is available on Jade Power’s SEDAR profile at www.sedar.com. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Jade Power expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

¹    As the purchase price payable pursuant to the Purchase Agreement is denoted in Euros, the CDN$ references in this press release assume a Euro / CDN$ exchange rate of 1:1.3778 based on the Bank of Canada exchange rate as at November 21, 2022.