Cloudberry Clean Energy Annual report 2020

83 Cloudberry Annual report 2020 Financial statements The acquisition was financed by issuing shares at fair value of NOK 10.74 per share. 12.363 million shares in Cloudberry Clean Energy AS were issued to the former Scanergy AS shareholders at a nominal value NOK 0.25 per share (share capital increased by NOK 3,09 million). The fair value of the shares were set at observed market prices with comparable and listed development companies in Sweden and historical and recent transactions. External consultants were engaged for a due diligence of the company. The company has for the last ten years special- ised in the development of renewable projects in Norway and Sweden (primarily wind in Sweden). The management believes the acquisition provides the company with a highly complementary busi- ness segment that gives a positive effect on future earnings, in excess of the fair value of acquired net assets. By owning both a development and produc- tion company, Cloudberry controls the value chain from early phase development to production and do in a less extend need to participate in competitive bidding rounds for renewable projects. The company has projects ready to construct and an exclusive backlog. In addition to the backlog, CBD has a large pipeline of on- and off-shore projects. Ownership interest equals the share of voting rights. Cloudberry acquired Skogvind AS On 31 August 2020, Cloudberry Clean Energy AS acquired 100% of the voting shares in Skogvind AS. Skogvind is a limited company located in Oslo, Norway. The acquisition was financed by issuing 118,648 Cloudberry shares at fair value of NOK 12.01. The shares in Cloudberry Clean Energy AS were issued to the former Skogvind AS shareholders at a nominal value NOK 0.25 per share (share capital increased by NOK 29.6 thousand) Skogvind is a wind power player with a focus mainly on the smaller and gentle projects. Skogvind has several agreements with landowners with intention to build wind power plants in Norway with a potential of 120 MW. All projects are in the early stages and no notification has been sent for any of the projects. In addition, a number of other possibilities for wind power projects have been identified. Skogvind represents an interesting opportunity to expand Cloudberry’s development business. It will also provide a better foothold for wind power in the Nordics.