Cloudberry Clean Energy Annual report 2020

Cloudberry Annual report 2020 Financial statements 120 Note 29 Subsequent events Acquisition of Selselva Kraft AS On 13 January 2021 Cloudberry completed the trans- action for the acquisition of 100% of the shares in Selselva Kraft AS (the “Selselva hydropower plant”). The acquisition cost and the consideration of the shares is NOK 64.2 million, cash settlement. The financing of the hydropower company is covered by estimates 50% debt financing and equity through the announced Private Placement on 14 December 2020. Selselva Kraft AS is a producing hydropower plant located in Sunnfjord municipality in Vestland county with an annual production at a normalized level of 20 GWh. Net acquired assets was NOK 5.7 million, this includes a cash position of 5.6 million. Total assets pr 31 December 2020 vas NOK 59.2 million. Total revenue in 2020 was NOK 7.6m and profit before interest and tax (EBIT) was NOK 3.8m and profit after tax was NOK 0.7m. (all figures are unaudited at the time of this report). The pro forma effect on the Group accounts for 2020 had been revenue of NOK 7.6m and EBIT of NOK 3.7 before depreciation and amortization of excess values. The purchase price allocation is not completed and therefore not presented. Signed SPA for Stenkalles (Rewind Vänern) On 15 January 2021 Cloudberry announced that Cloudberry and Downing LLP (“Downing”), on behalf of its managed fund(s), have signed the share purchase agreement (SPA) for the construction and ownership of a 100 MW nearshore, shallow water wind farm in Lake Vänern in southern Sweden. Cloudberry Production will own 20% of the project after commissioning. Total expected sales value of the wind project is around NOK 300 million, subject to actual costs and that the final investment deci- sion related to the project is made. Around NOK 100 million will be paid at the expected financial close during 2021, and the remaining purchase price will be paid after project commissioning in the second half of 2023. Acquisition of Skåråna Kraft AS On 24 February Cloudberry completed the transac- tion for the acquisition of 100% of the Skåråna Kraft AS (“Skåråna hydropower plants”). The acquisition cost and the consideration of the shares is esti- mated to NOK 23.7 million, cash settlement. The financing of the hydropower company is covered by estimated 50% debt and equity through the announced Private Placement on 14 December 2020. Skåråna Kraft AS has started the construction of two hydropower plants, and according to plan will com- mence production during fourth quarter of 2021. The plants are located in Lund municipality in Rogaland county with an annual production at a normalized level of 14 GWh. The hydropower plants will benefit from the right to regulate lake Viglandsvatnet upstream of the two plants. Net acquired assets NOK 17 thousand, includes a cash position of NOK 17 thousand. Prelimary capex is expected to NOK 55 million. Of the transaction price of NOK 23.7 million, NOK 6 million is held back in case of cost overrun by the construction entrepreneur. Net cash outflow in February was NOK 17.7 million. The remaining payment of the transaction cost and the capex is expected at 2nd half of 2021. The power plant is under construction and hence there are any not material items on the profit or loss statement in the company that would affect pro forma figures for 2020 for Cloudberry. The purchase price allocation is not completed and therefore not presented. Signed SPA for the acquisition of Ramsliåna Kraft AS and option agreement to acquire Lona Kraft AS On 2 March Cloudberry signed a Share Purchase Agreement (SPA) to purchase Ramsliåna Kraft AS, a hydropower company in Norway with an expected annual production of 6 GWh. Ramsliåna is currently under construction and production is expected to commence fourth quarter 2021. Financial close is expected post test production and end of 2021. The hydro plant is located in Agder county and is expected to have full year production.