Dana Morin of Fundy Tidal Inc. said at Port Days in September that Digby County can become a hub of tidal energy research and development, says
WESTPORT - Fundy Tidal Inc. of Westport said today has closed its deal with Tribute Resources Inc., which sees the Ontario-based energy company take a 10 per cent minority interest in Fundy Tidal for a subscription price of $597,750.
The London, Ont., company plans to purchase a further 10 per cent.
Tribute is making the investment through its wholly owned subsidiary International Marine Energy Inc. The purchase of 398,500 Fundy Tidal shares was announced Nov. 6 during the International Conference on Ocean Energy in Halifax.
As announced in September, the board of directors of Fundy Tidal has appointed Jennifer Lewis, the chief financial officer of Tribute, as CFO of Fundy Tidal.
In today's news release, Fundy Tida said it and IME have also entered into a right of first refusal agreement to develop and finance all current Fundy Tidal COMFIT (Community Feed-in Tariff) projects and to collaborate on future projects in Atlantic Canada.
“This influx of investment enables us expand our staff, hire contractors and continue to develop our projects and internal expertise,” said Fundy Tidal chairman Doug Bertram. “We have excellent partners to complete the financing required for our COMFIT projects and to grow our company into a leader in marine renewable energy locally and internationally.”
The purchase price for a 20 per cent share interest in Fundy Tidal is $1,195,500. IME paid $597,750 on closing and will pay the balance on financial close of the Digby Gut Ltd. Partnership.
Following the issuance of the common shares to IME, Fundy Tidal declared a stock dividend on its issued and outstanding common shares. Each shareholder received one Class B preferred share for each common share held, and each holder of an option to purchase common shares was granted an option to purchase an equivalent number of Class B preferred shares.
The Class B preferred shares confer upon shareholders the right to receive cumulative preferential dividends equal to 50 per cent of the amount received by the company as income on its investment in Digby Gut Ltd. Partnership.
IME has also acquired Tribute Resources’ interests in Western Tidal Holdings,
A statement on Tribute’s webpage says the company intends to develop all further tidal power projects in Canada and internationally within IME.
Tribute is in negotiations with third parties to source financing and development expertise.
IME has been initially funded by a cash share contribution of $1 million from Tribute.
IME and Fundy are developing the 1.95 megawatt small-scale tidal COMFIT in Digby Gut.
Both IME and Fundy Tidal will form and manage the project team to work with Dutch-based tidal turbine producer, Tocardo International BV, to commission the project which may include the installation of up to 16 of the company’s T200 turbines and the design and development of a floating barge platform to house them.
The Digby Gut project is one of three COMFIT projects under development in Digby County by Fundy Tidal.
Fundy Tidal has elected two representatives of IME to its board of directors—Tribute president Jane Lowrie and IME vice-president Peter Budd.