ATM Equity Program
Northland Power arranges ATM equity program
2022-03-01 20:15 ET - News Release
Ms. Pauline Alimchandani reports
NORTHLAND POWER ESTABLISHES AT-THE-MARKET EQUITY PROGRAM
Northland Power Inc. has established an at-the-market equity program that allows the company to issue up to $500-million of common shares from treasury to the public from time to time, at the company's discretion. Any common shares sold in the ATM program will be sold through the Toronto Stock Exchange or any other marketplace on which the common shares are listed, quoted or otherwise traded, at the prevailing market price at the time of sale.
The ATM program provides Northland with additional financing flexibility to finance its growth initiatives should it be required or desirable in the future. The volume and timing of distributions under the ATM program, if any, will be determined at the company's sole discretion. The company is not obligated to make any sales of common shares under the ATM program.
The ATM program will be effective until the earlier of July 16, 2023, and the date that all of the common shares issuable under the ATM program have been issued, unless terminated prior to such date by the company or the agents in accordance with the terms of the equity distribution agreement dated March 1, 2022, between the company and CIBC Capital Markets, National Bank Financial Inc., BMO Nesbitt Burns Inc., Desjardins Securities Inc., RBC Dominion Securities Inc., TD Securities Inc. and Scotia Capital Inc. Distributions of the common shares through the ATM program will be made pursuant to the terms of the equity distribution agreement.
Northland intends to use the net proceeds from the ATM program, if any, to finance the advancement of Northland's growth projects and for general corporate purposes. As common shares sold in the ATM program will be distributed at prevailing market price at the time of the sale, prices may vary among purchasers during the period of the distribution.
"As a growth company with a significant pipeline of development projects, Northland is committed to unlocking value by deploying capital to advance our growth projects," said Pauline Alimchandani, Northland's chief financial officer. "Our funding plan, as disclosed within our most recent investor day held on Feb. 8, provides for flexibility to access various sources of capital pools to fund the financial close (FC) equity requirements for our projects, both at the corporate and project level. The ATM program provides another source of funding to further enhance our flexibility."
The ATM program is being established pursuant to a prospectus supplement dated March 1, 2022, to the company's short form base shelf prospectus dated June 16, 2021. The prospectus supplement, the shelf prospectus and the equity distribution agreement are available on SEDAR.