OAKVILLE, ONTARIO / ACCESSWIRE / June 19, 2020 / Spark Power Group Inc. (TSX:SPG), parent company of Spark Power Corp. ("Spark Power" or the "Company"), is pleased to announce that it has formally signed its revised financing agreement with its banking partner, the Bank of Montreal ("BMO") and has secured additional liquidity through both US and Canadian federal wage subsidy programs.
"We are fortunate to have such a committed and supportive partner in BMO, who understands our business goals, believes in our management team and strategy, and continues to provide the necessary support for our financial and operational flexibility," said Eric Waxman, CIO, Spark Power Corp. "Their continued commitment to our business has served us well through the pandemic and is now supporting us as we return to the growth trajectory we had established in the three quarters preceding COVID-19."
The amended agreement with BMO is focused on providing additional liquidity for the Company primarily through the expansion of current borrowing capacity, principal payment deferral, and covenant relief. The Company has also applied for and received wage subsidies from the US and Canadian governments. In late April, the Company received support for its US businesses through the Paycheck Protection Program ("PPP"), and confirms that it has received its first payment under the Canadian Emergency Wage Subsidy Program ("CEWS") for Period 2 (April 12-May 9) and will also qualify to receive the CEWS subsidy for Period 3 (May 10-June 6) and Period 4 (June 7-July 4). The banking amendments and wage subsidies coupled with aggressive but measured reductions in variable overhead costs and capital spending will provide the Company with sufficient liquidity to manage through the current crisis. It also provides the operational flexibility required to fund the expected working capital demands as the Company ramps up to support its customers' return to business in the coming months.
"In March, as the potential impacts of COVID-19 on everyday life, the economy, and business practices became clearer, we made liquidity management a key priority for the Company," said Dan Ardila, CFO, Spark Power Corp. "We took significant operational actions, but I am also very pleased that we commenced discussions and negotiations with our lender early-on in the crisis. In doing so, together with the support we are receiving under both PPP and CEWS, not only have we survived the pandemic, but we are in great shape to exit this crisis and continue our mission to be North America's Trusted Partner in Power™."
About Spark Power
Spark Power is the leading independent provider of end-to-end electrical contracting, operations and maintenance services, and energy sustainability solutions to the industrial, commercial, utility, and renewable asset markets in North America. We work to earn the right to be our customers' Trusted Partner in Power™. Our highly skilled and dedicated people, located in the communities we serve, combined with our knowledge of the power industry, technology expertise, and commitment to safety, ensures we deliver the right solutions that keep our customers' operations up and running today and better equipped for tomorrow. Learn more at www.sparkpowercorp.com.
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect Spark Power's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on Spark Power's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the execution of its COVID-19 exit strategy and return to business plans by Messrs. Waxman and Ardila.
The forward-looking statements in this news release are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, Spark Power assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Media Inquiries:
Natasha McNabb, Corporate Communications Specialist
[email protected]
+1 (289) 259-4399
Financial and Investor inquiries:
Dan Ardila, Chief Financial Officer
[email protected]
+1 (905) 829-3336 x127
SOURCE: Spark Power Group Inc.