Jun 24, 2024

US$2.6 Million Loan Secured by SolarBank for Geddes Project

SolarBank Corporation (Nasdaq: SUUN) (Cboe CA: SUNN) (FSE: GY2) ("SolarBank" or the "Company") announces that it has entered into a loan agreement with Seminole Financial Services, LLC ("Seminole") for an initial US$2,600,000 construction to mini-perm loan (the "Loan") that will be used to complete construction of the Geddes Project located in Upstate, New York (the "Project"). Seminole was founded with the goal of financing Renewable Energy and Real Estate projects. To date, Seminole has directly funded over US$2.5 Billion in capital for Renewable Energy projects across the United States.

The Project is expected to become operational and being producing power during the third quarter of 2024 and the Company will own and operate the Geddes project. The Project which has a designed capacity of 3.79 megawatts (MW) DC is repurposing a closed landfill, addressing two critical challenges: the need for clean energy and the transformation of contaminated sites into valuable assets.

Once completed, the Project will be operated as a community solar project. Community solar is a group of solar panels with access to the local electricity grid. Once the panels are turned on and generating electricity, clean energy from the site feeds into the local power grid. Depending on the size and number of panels the project has, dozens or even hundreds of renters and homeowners can save money from the electricity that is generated by the project. By subscribing to a project, a homeowner earns credits on their electric bill every month from their portion of the solar that's generated by the project, accessing the benefits of solar without installing panels on their home.

The material terms of the Loan are as follows:

  • the Loan will be advanced as a construction loan having principal amount of $2,600,000;
  • upon substantial completion of the Project and the Project receiving permission to operate, the Loan shall convert into a mini-perm loan;
  • no shares are issuable in connection with the Loan; and
  • the Loan is secured against the assets associated with the Project and the Company has provided a guarantee of completion and payment.

There are several risks associated with the development of the Project and the Loan. The development of any project is subject to the continued availability of third-party financing arrangements for the Company and the risks associated with the construction of a solar power project. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar power, which could result in future projects no longer being economic. In addition, if the Company defaults under the terms of the agreement for the Loan, the lender may declare the Loan repayable in full and if the Company is unable to repay, the lender may realize on its security and enforce the guarantee against the Company. Please refer to "Forward-Looking Statements" for additional discussion of the assumptions and risk factors associated with the statements in this press release.

SolarBank | www.solarbankcorp.com