Juhl Energy, Inc. Enters into Agreement to Buy Back Preferred Shares from Institutional Investor Transaction Structured to Return Approximately 30% of the Company's Equity to its Shareholders
PIPESTONE, Minn., Feb. 25, 2014 /PRNewswire/ -- Juhl Energy, Inc. (OTCQB: JUHL, the "Company"), a leading provider of Clean Energy Solutions and the Leader in Community Wind Power, today announced that the Company has recently completed an agreement with Vision Opportunity Master Fund, Ltd. ("Vision") to repurchase all of the Juhl Energy, Inc. Series A and B Preferred stock currently held by Vision.
"This transaction will be followed by the filing of a registration statement to offer this stock to our shareholders in a Rights Offering," stated John Brand, Chief Financial Officer at the Company. "What this means is that our current shareholders will be given the first opportunity to purchase additional Juhl Energy common stock; and we hope they all participate. Both Juhl Energy Chairman Dan Juhl and President John Mitola have long spoken about 'democratizing' investment capital into the renewable energy industry. By removing our primary institutional investor in what we believe to be a manageable, structured approach, we will have positioned Juhl Energy to be a publicly-traded renewable energy company that is mostly owned by a diversified group of what is now over 1,800 individual shareholders."
"While Vision has been a solid institutional investor since 2008, this agreement allows us to recapture stock long-held by them, freeing us to clear this ownership concentration and distribute this part of our company back to our common stockholders through our planned Rights Offering," added John Mitola, President of Juhl Energy. "We had previously explored other institutional corporate funding approaches to repurchase this equity and felt that all of them came with too high of an underlying cost of capital and didn't provide enough direct benefit to our shareholders. In reaching a straightforward arrangement with Vision, we can now provide 100% of the shares that are being recaptured back to all of our shareholders."
When completed, this agreement will also simplify Juhl Energy's capital structure by eliminating the majority of the outstanding preferred stock and removing the current quarterly dividend expense that had accompanied the preferred equity held by Vision.
For additional information on this Vision transaction, refer to the Company's 8-K filing filed on February 24, 2014, with the Securities & Exchange Commission, www.sec.gov, or the Investor Info section of the Juhl Energy home page, www.juhlenergy.com.
About Juhl Energy, Inc.
Juhl Energy is an established leader in the renewable energy industry with a focus on Community-Based Wind Power development, ownership and management throughout the United States and Canada. Juhl Energy pioneered Community-Based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms. To date, the Company has completed 23 wind farm projects and provides operations management and oversight across the portfolio. Juhl Energy services every aspect of wind farm development from full development and ownership, general consultation, construction management and system operations and maintenance, in addition to performing other cellular tower maintenance services. With its consolidation of the Valley View, Winona County and Woodstock Hills wind farms, the Company has now invested in and operates 21.7 MWs of wind power through its independent power producer ("IPP") subsidiary, Juhl Renewable Assets, Inc. Through its subsidiary, Juhl Renewable Energy Systems, Inc. ("JRES"), the Company also provides full sales and service to smaller, on-site wind and solar projects in addition to our larger Community Wind Farms. With its acquisition of Power Engineers Collaborative, Juhl Energy provides a full range of engineering services to the energy industry, building systems markets and heavy industry. Juhl Energy is based in Pipestone, Minnesota and has offices in Chicago, Minneapolis, Madison and Milwaukee. Juhl Energy is traded on the OTCQB under the symbol 'JUHL'. Additional information is available at the Company's website at www.juhlenergy.com or by calling (507) 562-8090.
Juhl Energy Investor Relations
Phone: (888) 438-JUHL (5845)
FORWARD LOOKING STATEMENTS
This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Juhl Energy's current expectations about its future results, performance, prospects and opportunities. Juhl Energy has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Juhl Energy and are subject to a number of risks, uncertainties and other factors that could cause Juhl Energy's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements and specifically those statements referring to any specific projects, prospective acquisitions and wind farm assets, and transactions mentioned herein. These risks may be described from time to time in Juhl Energy's subsequent SEC filings; and such factors as incorporated by reference.
SOURCE Juhl Energy, Inc.