Pinnacle Obtains Shareholder Approval for Arrangement with Drax Group
Pinnacle Renewable Energy Inc. (“Pinnacle” or the “Company”) is pleased to announce that at the Company’s special meeting of shareholders (the “Meeting”) held earlier an overwhelming majority of Pinnacle shareholders voted in favour of the special resolution (the “Arrangement Resolution”) approving the previously announced plan of arrangement under the Business Corporations Act (British Columbia), pursuant to which Drax Group plc (“Drax”) through its wholly-owned subsidiary, Drax Canadian Holdings Inc., will acquire all of the issued and outstanding common shares (“Shares”) of the Company for C$11.30 in cash per Share (the “Arrangement”).
The Arrangement Resolution required approval by 66?% of the votes cast by Pinnacle shareholders present in person or represented by proxy at the Meeting. Details on the voting results at the Meeting are below:
|Total Shares Voted at the Meeting:||22,126,000|
|Total Shares voted FOR the Arrangement Resolution:||21,234,673|
|Percent of Shares voted FOR the Arrangement Resolution:||95.97%|
A report on voting results for the Meeting will be filed under the Company’s profile on SEDAR at www.sedar.com.
Drax has separately announced today that its shareholders overwhelmingly voted in favour of the Arrangement at a general meeting of Drax’s shareholders held earlier today.
Pinnacle anticipates returning to the Supreme Court of British Columbia (the “Court”) on April 6, 2021 to seek a final order of the court approving the Arrangement. Completion of the Arrangement remains subject to customary closing conditions, including approval of the Court. Completion of the Arrangement is expected to occur in April 2021, subject to the satisfaction or waiver of the final outstanding conditions.
Pinnacle is the second largest producer of industrial wood pellets in the world. The Company’s products are used to displace fossil fuels in the production of baseload electrical power in key markets around the world. The Company operates nine production facilities in Western Canada and one in Alabama, with one additional facility under construction in Alabama and more in development. The Company also owns a port terminal in Prince Rupert, BC. Pinnacle has entered into long-term, take-or-pay contracts with utilities in the U.K., Europe and Asia that represent an average of 99% of its production capacity through 2026.
Source: Pinnacle Renewable Energy Inc.