Nu E Power considers acquiring Blu Dot Systems for CAD $4.59m

Nu E Power has announced a non-binding letter of intent to potentially acquire Blu Dot Systems, a company specialising in solar farm construction and other industrial solutions.

Blu Dot Systems, based in Alberta and established under the Business Corporations Act, specialises in solar farm construction, maintenance, and engineering solutions for large industrial applications such as data centres and significant energy infrastructure. The company also focuses on designing and installing commercial and industrial systems aimed at providing green solutions.

The proposed transaction will see Nu E Power acquiring all outstanding shares of Blu Dot in exchange for 8,500,000 common shares valued at CAD $0.54 each. "Readers are cautioned that completion of the Proposed Transaction remains subject to a number of conditions, including, but not limited to, completion of due diligence, negotiation of definitive documentation and the receipt of any required regulatory approvals," stated Nu E Power Corp. in the announcement.

Nu E Power has clarified that the proposed acquisition will not constitute a fundamental change nor result in a change of control for the company as per Canadian securities laws. However, due to the involvement of Devon Sandford, the Chief Executive Officer of Nu E Power, who is also a director and shareholder of Blu Dot, the deal might be considered a related party transaction.

The acquisition forms part of Nu E Power's broader strategy to develop up to 2GW of renewable energy projects in Canada by 2030, in partnership with Low Carbon Canada Solar Limited. Low Carbon Canada is a subsidiary of the UK-based renewables firm, Low Carbon Investment Management.

"The Company will provide further information regarding the Proposed Transaction, and any related party aspects, as its due diligence process is completed," the press release stated, highlighting the ongoing nature of the discussions and the multiple conditions yet to be fulfilled before the transaction can be completed.

The press release underlined that forward-looking information should not be heavily relied upon due to inherent risks and uncertainties that could impact future results. "Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to reach final terms with Blu Dot in respect of the Proposed Transaction, the ability to develop 2GW of renewable energy projects in Canada by 2030, general economic, business and political conditions, including changes in the financial markets," the release stated.