OAKVILLE, ON / ACCESSWIRE / June 23, 2020 / Spark Power Group Inc. (TSX:SPG), parent company of Spark Power Corp. ("Spark Power" or the "Company"), is pleased to announce that the previously appointed Special Committee (the "Special Committee") of the Board of Directors (the "Board") is considering a near term restart of the strategic review process described below, which was suspended on May 4, 2020 due to the COVID-19 pandemic. The Special Committee is comprised solely of independent directors of the Board, consisting of Mr. Larry Taylor (Chair), Mr. Lucio Di Clemente and Mr. Joe Quarin.
"Spark Power's ability to successfully navigate through an unprecedented period of crisis highlights the strength of the management team and the flexible and distributed nature of the operating model. It is clear evidence that the Company's strategic focus on revenue diversification and essential industries provides the stability and resilience necessary in these most difficult economic times," said Larry Taylor, Chair of the Board, and Chair of the Special Committee. "As the Company returns to its trajectory of revenue growth and profitability, and as market conditions improve, the Special Committee and its advisors are considering a near term relaunch of the strategic review process," added Taylor.
While COVID-19 has undeniably created business challenges in the economy and has had a material impact on the business, the Company's role as a supplier of critical services - largely to customers deemed ‘essential' - has limited the scale of the impact and is resulting in a rapid return to pre-pandemic revenue levels. Based on swift operational actions taken at the onset of the pandemic, a keen focus on cash flow, and the support of federal wage subsidy programs in both Canada and the United States, the Company's liquidity position has substantially improved since March, and is well positioned to fund the operating capital required to support this growth.
"We have been working hard to limit the bulk of the impact of COVID-19 to the second quarter and manage liquidity, and I am pleased to now see strong momentum in all parts of our business - with several business units recently relaunching paused hiring plans," said Jason Sparaga, co-CEO, Spark Power Corp. "This gives me confidence that it is time to return our attention to the key elements of our growth strategy: to be our customers' Trusted Partner in Power™ and to drive for balanced growth. We are again investing in organic growth and have re-engaged with several acquisition targets, and we look forward to working with the Special Committee in the strategic review process that is focused on providing the necessary capital to support our longer term growth plans," added Sparaga.
As announced by the Company on February 4, 2020, the strategic review process is being undertaken with a view to enhancing shareholder value. The review will be conducted by the Special Committee. The Special Committee has been authorized to identify, evaluate and consider a broad range of alternatives available to the Company, focused on providing the necessary capital to execute on the Company's strategic plan. In connection with the strategic review process, KeyBanc Capital Markets has been engaged as sole and exclusive financial advisor to the Special Committee, Cassels Brock & Blackwell LLP has been engaged as legal advisor to the Company and Bennett Jones LLP has been engaged as legal advisor to the Special Committee. The review has not been initiated in response to any proposal received by the Company. The Company, with the assistance of the Special Committee and its advisors, intends to complete the review process in a timely fashion, however, there is no assurance that these efforts will be successful or that the review process will result in pursuing or completing any transaction and no timetable has been set for the completion of the review process. The Company will update the market when it determines that further disclosure on the review process is appropriate or required.
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 Information
This news release contains forward-looking information and forward-looking statements (within the meaning of applicable securities laws) which reflect Spark Power's current expectations regarding future events. Forward-looking information and forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "could", "estimate" and other similar expressions. These statements are based on Spark Power's expectations, and include, without limitation, statements regarding the strategic review process restarting, the timing therefore and the outcome thereof.
The forward-looking information and forward-looking statements in this news release is not a guarantee 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 information and forward-looking statements, including without limitation, the impact of the ongoing COVID-19 pandemic on the regional, nationwide and global economy. Readers, therefore, should not place undue reliance on any such forward-looking information and forward-looking statements. By their very nature, forward-looking information and forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that results will not be achieved or that assumptions do not reflect future experience. Readers are cautioned not to place undue reliance on the forward-looking information and forward-looking statements as a number of important risk factors and future events could cause the actual outcomes to differ materially from plans, objectives, expectations, and intentions expressed in such forward-looking information and forward-looking statements. All of the forward-looking information and forward-looking statements made in this press release are qualified by these cautionary statements, the forward-looking information and 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 information or forward-looking statements, whether as a result of new information, future events or otherwise.
Media Inquiries:
Kim Samlall, Director, Marketing Communications
[email protected]
+1 (905) 829-3336 x185
Investor and Regulatory Inquiries:
Dan Ardila, Chief Financial Officer
[email protected]
+1 (905) 829-3336 x127
SOURCE: Spark Power Group Inc.