Crius Energy Trust Tr Unit CRIUF

Exiting the Solar Business

[novascotian2014]

Exiting the Solar Business ..The Company is in the final stages of a multi-step process to divest the solar business and expect minimal ongoing losses from this business during the remainder of the year. While the initial expectation was that the process would be complete in the third quarter of 2018, we now expect the process to be completed by the end of the year. Solar related losses have been substantially eliminated due to the discontinuation of solar sales and marketing activities, with the temporary exception of the Verengo Solar platform in California, which continues to operate on a near break-even basis. Excluding any proceeds from a sale of the solar business, the Company estimates one-time costs of up to $2 million to be incurred in the fourth quarter of 2018.

OUTLOOK..Following the completion of an extensive review of strategies to enhance unitholder value earlier this year, the Board and Management are confident in our strategic decision to focus on our deregulated energy business. Management continue to advance our strategic initiatives to exit solar and improve the profitability of our deregulated energy business through costreduction, high-margin customer growth and portfolio optimization. These strategic initiatives are expected to result in a cumulative $35 million annual improvement to Adjusted EBTIDA following the acquisition of USG&E in the third quarter of 2017; made up of cost-reductions of $25 million on an annual run-rate basis, which we are now poised to achieve by year-end, together with the exit from the solar business, which is now substantially complete. Management believe these strategic changes are creating a foundation on which the company can deliver a minimum steady-state base of Adjusted EBITDA of $100 million annually.