Aug 3 (Renewables Now) - Canadian energy company Tribute Resources Inc (CVE:TRB) plans to buy the 53.5% stake it does not already own in Dutch tidal turbines developer Tocardo International BV.
The Ontario-based company announced today it has executed a term sheet that calls for Tribute Resources to exchange 53 million of its own common shares for the remaining interest in Tocardo.
Tribute’s plan for the enlarged company is to focus on tidal and marine power development. More specifically, the primary business of Tribute will encompass all current operations of Tocardo and its own tidal assets. The Canadian company noted that the parties consider operating as one team to be the optimal structure by which to move forward.
Den Oever-based Tocardo develops and manufactures tidal and free-flow water turbines for deployment in rivers and ocean environments. Presently, the firm has eight turbines deployed and operating in Dutch waters and a contract for five devices at the European Marine Energy Centre (EMEC) in Orkney, Scotland. Tocardo’s offices and staff will not be moved from Den Oever, according to the statement.
The short-term goal of the reorganised company will be to deploy in late 2018 a Universal Foundation System (UFS), which is a fully integrated 1.5-MW tidal power solution featuring five Tocardo T2 turbines on a semi-submersible U-shaped floating platform. In order to achieve that, the two companies will seek to raise about CAD 1.5 million (USD 1.2m/EUR 1m) for Tocardo and CAD 700,000 for Tribute within two weeks. The Dutch firm needs the capital so that it could upscale engineering activities and move forward with its business opportunities.
Tribute pointed out that the funds will be raised through the sale of preferred LP units in Minas Tidal LP, the vehicle that develops a project at Berth A in the Fundy Ocean Resource Centre for Energy (FORCE) in the Minas Passage, Nova Scotia. Both Tribute and Tocardo have stakes in Minas Tidal.
Tribute intends to seek stockholder clearance to change its name to Tocardo Energy Inc following the combination. The board of the enlarged company is planned to include four members from Tribute and three from Tocardo.
The parties expect to prepare binding agreements regarding the share swap within the next month and to complete the transaction on or around September 30, 2017.
(CAD 1.0 = USD 0.796/EUR 0.671)