P Squared Renewables last week said that it will buy Calgary, Alberta-based Borealis GeoPower.
Borealis currently has two geothermal projects in development in British Columbia. The company plans to build the 15-MW Canoe Reach project near Valemount, B.C. Power from the project would be sold to BC Hydro. In addition, Borealis plans to build the 15-MW Lakelse Lake project near Terrace, B.C., in conjunction with the Kitselas First Nation.
TSX Venture Exchange approved the listing of P Squared’s common shares earlier this year and they commenced trading on the exchange on June 21. According to P Squared, it has 11 million common shares outstanding and options exercisable or exchangeable for an aggregate of 1.1 million P Squared shares at an exercise price of $0.10 per share.
P Squared and Borealis have entered a binding term sheet that sets the terms of the sale. The company said that P Squared’s 11 million shares will be issued in exchange for the 1,627 Borealis shares issued outstanding, with a resulting exchange ratio of 6,760.9 common shares of P Square shares for each Borealis share.
Map credit: Borealis