Sale of 400 MW offshore wind project in Canada

NaiKun Wind Energy Group Inc. has entered into an agreement to sell the 400 MW NaiKun Offshore Wind Farm located in the Hecate Strait off the coast of British Columbia, Canada to Northland Power Inc. Upon successful completion of the Transaction, Northland will be responsible for all aspects of the project’s development. The transaction will occur by way of the company selling Northland a 100% interest in its wholly-owned subsidiary, NaiKun Wind Development Inc.

Pursuant to the terms of the agreement:

• upon the project reaching its financial close, NaiKun will receive a payment based on the size of the developed project, which is expected to equal to the majority of NaiKun’s historical development costs on the project;
• upon the project becoming operational, Naikun will obtain future payments consisting of annual cash distribution from the project after the operating costs and specified return on equity have been recovered by Northland;
• Lastly, subject to the financial close of the project, Naikun has an option to purchase up to a 10% interest in Northland’s interest in the project.

The transaction is anticipated to close in mid-2020, subject to the satisfaction of certain customary conditions, including but not limited to Naikun obtaining the applicable regulatory approvals and approval of the transaction by way of a special resolution of the company’s shareholders.