Accretive acquisition of 15,000 RCEs continues business diversification
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
SERVICES/
TORONTO, June 16, 2014 /CNW/ - Crius Energy Trust (TSX: KWH.UN) today
announced that Crius Energy LLC, a comprehensive energy solutions
provider, has executed, through its affiliates, a purchase agreement to
acquire the retail electricity customer portfolio of HOP Energy LLC, a
provider of heating oil and petroleum products and related services,
for an aggregate purchase price of approximately $1.3 million. The
acquisition includes 13,000 residential and small commercial customer
accounts totalling approximately 15,000 residential customer
equivalents (RCEs) across five states in the northeast U.S.
"This acquisition, our second since the beginning of April, demonstrates
our ability to act on accretive opportunities arising from the retail
energy market volatility in the first quarter of the year," said
Michael Fallquist, Chief Executive Officer. "Consistent with our
strategy, this acquisition continues to diversify our portfolio, adding
fixed-price contracts and commercial customers across five states. We
welcome our new customers and can assure them of a seamless transition
to the Crius Energy family."
Customers added through the acquisition will not experience any change
to their service and will be transitioned either to Public Power or
Viridian Energy services, two of Crius Energy's retail brands, based on
location and service type.
"This acquisition further illustrates our ability to leverage our
scalable platform for efficient growth as the customers added will
require minimal incremental operating cost to serve," added Mr.
Fallquist. "We are actively pursuing other acquisition opportunities
and will remain disciplined in our approach. We are confident that we
have the financial capability to execute on other accretive
transactions as they become available. We remain focused on our goal
to grow and diversify cash flows to support long-term distributions for
our unitholders."
About Crius Energy
The Trust was established to provide investors with a
distribution-producing investment through the acquisition of a 26.8%
ownership interest in Crius Energy, LLC ("Crius Energy"). With more
than 600,000 residential customer equivalents, Crius Energy is a
comprehensive energy solutions partner that provides electricity,
natural gas and solar products to residential and commercial customers.
Crius Energy connects with energy customers through an innovative
family-of-brands strategy and multi-channel marketing approach. This
unique combination creates multiple access points to a broad suite of
energy products and services that make it easier for consumers to make
informed decisions about their energy needs. Crius Energy currently
sells energy products in 19 states and the District of Columbia with
plans to continue expanding its geographic reach.
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). Material
information pertaining to the Trust may be found on www.sedar.com or www.criusenergytrust.ca.
Caution Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of applicable Canadian securities laws, including (but not
limited to) statements about the Board's belief that the Bid may
represent a responsible investment of funds on hand. A statement is
forward-looking when it uses what Crius knows and expects today to make
a statement about the future. Forward-looking statements may include
words such as anticipate, assumption, believe, could, expect, goal,
guidance, intend, may, objective, outlook, plan, seek, should, strive,
target and will. These statements relate to future events or future
performance and reflect current assumptions, expectations and estimates
of management regarding growth, results of operations, performance,
business prospects and opportunities, Canadian economic environment and
liability to attract and retain customers. Such forward-looking
statements reflect current assumptions, expectations and estimates of
management and are based on information currently available to Crius as
at the date of this press release.
Forward-looking statements are subject to certain risks and
uncertainties, and should not be read as guarantees of future
performance or results and actual results may differ materially from
the conclusion, forecast or projection stated in such forward-looking
statements. These risks, uncertainties and other factors include but
are not limited to, Crius Energy's objectives and status as a mutual
fund trust and not a SIFT trust, results of operations, financial
position or cash flows, customer revenues and margins, customer
additions and renewals, customer attrition, customer consumption
levels, general and administrative expenses, treatment under
governmental regulatory regimes, distributable cash and Crius Energy's
expectations and estimates regarding the payment of distributions to
unitholders. Such assumptions, expectations, estimates, risks and
uncertainties are discussed under "Risk Factors" and "Forward-Looking
Statements" in Crius Energy's Annual Information Form dated March 28,
2013. Consequently, we cannot guarantee that any forward-looking
statements will materialize. Readers should not place any undue
reliance on such forward-looking statements.
SOURCE Crius Energy Trust
