Calgary, Alberta--(Newsfile Corp. - June 26, 2023) - Green Impact Partners Inc. (TSXV: GIP) ("GIP" or the "Company") is pleased to announce that it has entered into a subscription agreement with certain funds and accounts managed by Encompass Capital Advisors LLC ("Encompass") for a non-brokered private placement of 1,000,000 common shares in the capital of the Company (the "Offered Shares") at a price of Cdn$10.00 per Offered Share, for proceeds of Cdn$10 million (the "Private Placement"). Encompass has been a shareholder of GIP since the Company's inception in May 2021. As a result of the closing of the Private Placement, funds and accounts managed by Encompass hold 3,009,600 common shares ("Shares") of the Company, representing approximately 14.13% of the issued and outstanding Shares on a diluted and non-diluted basis.
Closing of the Private Placement occurred on June 26, 2023. No finder's fee is payable in connection with the Private Placement. The net proceeds of the Private Placement will be used to fund project expenditures for the Future Energy Park, and for general and administrative and working capital requirements until financial close with Amber Infrastructure occurs, anticipated in late 2023.
"This $10 million will be used to help create additional value for GIP shareholders by allowing us to start earthwork activities for the Future Energy Park in the coming weeks," said Jesse Douglas, Chief Executive Officer. "Although we believe that $10 per share is still below the intrinsic value of GIP equity, it is minimally dilutive and substantially above our current trading price, validating the equity upside available to shareholders. We are excited and proud to have shareholders like Encompass supporting us in our decarbonization path and helping us create value for all stakeholders."
"We are impressed by Green Impact's vision to develop the largest renewable natural gas facility in North America," said Todd Kantor, Founder and Managing Member of Encompass. "We believe the strategy to convert waste wheat, as well as incorporate carbon capture into the process, could position GIP to be a thought leader in bioenergy."
Completion of the Private Placement is subject to all regulatory approvals, including acceptance of the TSX Venture Exchange. All securities issued in connection with the Private Placement will be subject to a hold period of four months and one day from the date of closing. There can be no assurance the Private Placement will be completed, whether in whole or in part. For further details on the Private Placement, please contact the Company at the contact information set forth below.
About Green Impact Partners
Green Impact Partners is focused on creating a sustainable future and inclusive planet by developing clean energy, with a near term focus on RNG projects. GIP acquires, develops, and builds RNG projects, with the intention of building, owning and operating a portfolio of RNG facilities, and participates in a wide range of zero-carbon opportunities during all stages of a project's lifecycle - from idea generation through to operations. GIP has a growing portfolio of RNG projects under development, representing over Cdn$2 billion in capital expenditures over the next three years. In its pursuit of net zero earth impact, GIP is positioned to be a leading producer of net zero carbon energy in North America. GIP's shares trade on the TSX Venture Exchange under the symbol GIP. For more information about GIP and its projects, visit www.greenipi.com.
For Further Information
Please contact Nikolaus Kiefer, Chief Investment Officer at (236) 476-3445 or investors@greenipi.com or visit www.greenipi.com.
Cautionary Statements
This news release contains forward-looking statements and/or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. When used in this release, such words as "would", "will", "anticipates", "believes", "targets", "explores" and similar expressions, as they relate to GIP, or its management, are intended to identify such forward-looking statements. Such forward-looking statements reflect the current views of GIP with respect to future events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause GIP's actual results, performance or achievements to be materially different from any expected future results, performance or achievement that may be expressed or implied by such forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to: the impact of general economic conditions in Canada and the United States; the ongoing COVID-19 pandemic and related secondary impacts, such as supply chain issues; industry conditions including changes in laws and regulations and/or adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, in Canada and the United States; volatility of prices for energy commodities; change in demand for clean energy to be offered by GIP; competition; failure to negotiate and conclude any required commercial agreements; non-performance of agreements in accordance with their terms; lack of availability of qualified personnel; obtaining required approvals of regulatory authorities, in Canada and the United States; ability to access sufficient capital from internal and external sources; many of which are beyond the control of GIP. Forward-looking statements included in this news release should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such forward-looking statements. In particular, this news release contains forward-looking statements, based upon assumptions which management of the Company believes to be reasonable, pertaining to but not limited to the Forclosing of the Private Placement.
Readers are encouraged to review and carefully consider the risk factors pertaining to GIP described in the filing statement of GIP dated May 17, 2021, and 2022 year end MD&A, which are accessible on GIP's SEDAR issuer profile at www.sedar.com. The forward-looking statements contained in this release are made as of the date of this release, and except as may be expressly be required by law, GIP disclaims any intent, obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Management of GIP has included the above summary of assumptions and risks related to forward-looking statements provided in this release in order to provide shareholders with a more complete perspective on GIP's current and future operations and such information may not be appropriate for other purposes. GIP's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits GIP will derive therefrom.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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