Founded in 2000, Cloudworks is an independent power producer, which currently employs 30 people. Through this acquisition, Innergex has acquired attractive assets with long term power purchase agreements which it believes will provide it with cost synergies and operational efficiencies.
Additional cash flows generated from the assets acquired are expected to further increase Innergex's liquidity and flexibility to fund the development of future projects. By adding the recently commissioned low-risk hydroelectric facilities to its portfolio of assets, Innergex believes it is improving the stability of its cash flows and the sustainability of its dividend. Also, the transaction is expected to be accretive to Innergex's free cash flow per share upon commissioning of three run-of-river hydroelectric projects under development with 40-year power purchase agreements with a potential installed capacity of 76MW.
Cloudworks' portfolio of assets consists of an interest of 50.01% in six run-of-river hydroelectric facilities having a combined gross installed capacity of 150MW; full ownership of 76MW of run-of-river hydroelectric projects under development with 40-year power purchase agreements; and full ownership of run-of-river hydroelectric projects in various stages of development having a potential aggregate installed capacity of over 800MW.
