Transeastern Power Trust Reports Second Quarter 2015 Results

TORONTO, ONTARIO–(Marketwired – Aug. 31, 2015) – Transeastern Power Trust (“Transeastern” or the “Trust”) (TSX VENTURE:TEP.UN)(TSX VENTURE:TEP.DB) today released its unaudited financial results for the second quarter ended June 30, 2015. All amounts in this release are expressed in Canadian dollars unless otherwise indicated.

Q2 Highlights

  • Produced 3,070 MwH of energy from the Hydro Projects in the second quarter of 2015 generating revenue of $505,072, with $180,815 from the sale of electricity and $324,257 in revenue from the sale of green certificates
  • Declared and paid second quarterly distribution of 2015 $0.021875 per unit of the Trust (each, a “Unit”) in accordance with the targeted yield of 8.75% on an annualized basis through a combination of cash and Unit issuances to Unitholders who have elected to participate in the Trust’s Distribution Reinvestment Plan
  • Incurred net loss of $2,355,362 and an adjusted net loss of $975,047(1) (net losses include non-cash charges of $1,176,300 relating to mark to market losses on debentures as well as non-cash charges of $204,015 relating to the increase of the estimated fair value of milestone Units) during the three months ended June 30, 2015 with basic and diluted loss of $0.20 per Unit

Subsequent Events

  • On August 27, 2015, the Trust and Mediterranean Resources Ltd. (“Mediterranean”) entered into an arrangement agreement for the acquisition by the Trust of all of the issued and outstanding common shares of Mediterranean
  • On July 24, the Trust completed the acquisition of SC Power L.I.V.E. One SA and SC Corabia Solar SRL adding a portfolio of solar assets with a capacity of 16MWp to its producing asset base, closed the main tranche of its subscription receipt financing and closed a $5 million debt facility

J. Colter Eadie, Chief Executive Officer of Transeastern commented “The new solar acquisitions have increased our production capacity and diversified our power generation portfolio. The completion of these financings and the cash to be acquired through the Mediterranean acquisition strengthen Transeastern’s balance sheet significantly and position us well to pursue opportunities to further grow the business.”

Engagement of Palisade for IR Services and Issuance of Restricted Trust Units

Effective August 5, 2015, the Trust engaged Palisade Capital Corporation (“Palisade”) to provide investor relations services to Transeastern for a 12 month term (the “Term”).

Palisade is a consulting and investor relations company based in London, UK. As part of the compensation payable for services Palisade will be granted 50,000 restricted trust units (“RTUs”) pursuant to the terms of the Trust’s Restricted Trust Unit Plan. The RTUs will be granted forthwith and vest and become redeemable on the last day of the Term. The terms of the agreement with Palisade also provide that Transeastern will reimburse Palisade for reasonable disbursements and pay a monthly cash fee. The grant of the RTUs is subject to regulatory approval. Palisade currently owns 150,200 Units and warrants exercisable for 150,200 Units. Details on the terms of the warrants are included in the Trust’s press release dated July 27, 2015.

Subject to the approval of the TSX Venture Exchange, the Trust will grant 75,000 RTUs that vest and become redeemable upon issuance in lieu of the payment of cash fees to non-executive members of the Board of Directors.

About Transeastern

The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on solar and hydro power. The Trust intends to qualify as a “mutual fund trust” under the Income Tax Act (Canada) (the “Tax Act”). The Trust will not be a “SIFT trust” (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any “non-portfolio property” (as defined in the Tax Act). All material information about the Trust may be found under Transeastern’s issuer profile at www.sedar.com.

Forward-Looking Statements Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the energy law, expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, high inflation rates, failure to obtain bank financing, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), risks related to seasonality (including adverse weather conditions, shifting weather patterns, and global warming), a shift in energy trends and demands, a shift in energy generation in the European Union, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to Transeastern and its business are discussed under the heading “Risks and Uncertainties” in Transeastern’s annual management discussion and analysis dated August 31, 2015, a copy of which is available on Transeastern’s SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Transeastern expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

(1) Adjusted net loss is a non-GAAP measure that removes non-cash charges relating to mark to market losses on our debentures and non-cash charges relating from the revaluation of our Milestone units. Refer to “Review of Operations” in the Trust’s Management’s Discussion and Analysis for the three month period ended June 30, 2015 for further details.

Transeastern Power Trust
Ravi Sood
Chairman
+1 (647) 987-7663
rsood@transeastern.com

Transeastern Power Trust
J. Colter Eadie
Chief Executive Officer
+40 736 372 724
jceadie@transeaster.com

Transeastern Power Trust
Mike Murphy
Chief Financial Officer
+1 (416) 625-5064
mmurphy@transeastern.com