Finavera for Sale
Trent Ernst, Editor
Finavera Wind Energy is currently in discussions with potential bidders for the company, with initial offers expected shortly. Since the announcement was made on October 1, a fourth bidder has entered the negotiations, with “a number of new entrants” who are currently reviewing company data.
Earlier this year, Finavera was green-lit to build the Tumbler Ridge Wind Energy Project, receiving its General Area License of Occupation in early July. When we spoke to Finavera CEO Jason Bak at the time, he said Finavera was working on securing financing for the project.
As part of that, Bak said they hadn’t ruled out the idea of selling the project, but in a press release dated October 1, Bak says that the company has struggled with financing. “Ever since the award of our Electricity Purchase Agreements from BC Hydro in 2010, we have dealt with adverse market conditions and short term hedge funds that have punitively sold stock against the interest of the long term shareholder.”
Rather than raising money by the sale of properties, says Bak, Finavera is now looking to sell the company wholesale. While details on any potential sales or even who those buyers are is not public, the announcement seems to have been good news for investors, as the value of the company rose 40 percent the day of the announcement, nearly gaining back the entire value the company has lost all year. The falling share price has significantly undervalued the company. “This has resulted in a significant difference between our market capitalization and our inherent value,” says Bak.
In July, Finavera announced that it was pursuing the sale of its Wildmare Project, near Chetwynd, to Innergex Renewable Energy, Inc., but this announcement puts an end to that transaction.