Spark Power Group Inc. signed a nonbinding letter of intent with an unnamed independently owned company for a potential acquisition, which would significantly expand its presence in the U.S.
The potential transaction is expected to be completed by Oct. 31, subject to negotiation of agreements and satisfaction of all related conditions.
Separately, Spark Power Group amended its credit agreement with the Bank of Montreal, converting its acquisition line to a committed facility. The amended financing arrangement also provides conditional approval for an acquisition.
Net proceeds from the company's recently announced rights offering will be used to repay a portion of both the term and revolving indebtedness outstanding under its credit facilities with the Bank of Montreal.
"This will enable the Company to access the full [C]$35M available under our operating and capital lines, resulting in increased liquidity to support continued organic and acquisition-led growth," said Spark Power CFO Dan Ardila said.
