Spark Power Group Inc. - SKPGF STOCK NEWS

Spark Power Group Inc. announced significant changes to its Board of Directors effective April 27, 2022. Larry Taylor and Dan Ardila have resigned, while Lorie Waisberg has joined as an independent director. Jason Sparaga has stepped down as Board Chair, with Lucio Di Clemente taking over the role. The restructured board aims to provide improved oversight and value creation for shareholders, with all members standing for re-election at the upcoming meeting on May 25, 2022. The new leadership is expected to enhance the company's governance and align with its growth strategy.

Spark Power Group reports a 12.1% revenue growth to $255.8 million in fiscal 2021, driven by its Renewables sector, which rose 33.8%. However, annual adjusted EBITDA margin dropped to 8.4%, impacted by rising inflation and COVID-19 challenges. Fourth-quarter revenue decreased by 2.2% year-over-year to $65.4 million, with gross margins declining to 19.2%. The company raised $39.6 million in equity capital to enhance liquidity and support strategic initiatives. Financial covenant breaches are under negotiation with lenders.

Bullfrog Power, part of Spark Power's sustainability division, signed a power purchase agreement (PPA) with Berkshire Hathaway Energy Canada to support the 130 MW Rattlesnake Ridge Wind Power Project in Alberta. Expected to commence operations by May 2022, the project injects $56 million into the local economy, creating 150 jobs during peak construction and supplying energy for 78,000 homes. Bullfrog Power, along with partners Shopify and RBC, aims to facilitate renewable energy growth and enhance economic sustainability.

Spark Power Group has successfully completed a $29.6 million Rights Offering by issuing approximately 24.7 million Common Shares at $1.20 each. Additionally, a $10 million Private Placement was closed, adding to the company's financial resources. The total capital raised is $39.6 million, aimed at repaying debts and enhancing working capital. Following these transactions, Spark Power now has 89.9 million Common Shares outstanding. The participation from institutional investors signifies strong confidence in the company's strategic direction.

Spark Power Group Inc. has announced a Rights Offering to raise up to $30 million, enabling common shareholders to acquire additional shares at a discounted price of $1.20. Each shareholder will receive rights based on their current holdings, with the offering set to commence on December 21, 2021, and expire on January 26, 2022. Major insider participation is anticipated, with commitments totaling approximately $14.8 million. The funds will be used primarily to reduce debt and support operational growth. The offering is subject to regulatory approval.

Spark Power Group Inc. announced its first-ever Spark Power Career Discovery Expo, a virtual event taking place on December 7, 2021, aimed at high school students across Canada. The initiative, supported by a $5.3 million grant from the Government of Ontario's Skills Development Fund, connects students with industry leaders in electrical trades, engineering, and renewable energy. The Expo will feature six speakers, including the Minister of Labour, and provides opportunities for students to interact with Spark employees.

Spark Power Group reported impressive third-quarter revenue growth of 12.3% year-over-year, reaching $69.0 million (adjusted revenue of $72.5 million, or 18.0% increase). The renewables segment showed substantial growth, increasing 37.6% in the quarter and 36.5% year-to-date. Despite a reported EBITDA of $2.2 million, the adjusted EBITDA stood at $10.3 million, representing 14.9% of revenue. Key strategic initiatives, including Project Darwin, are expected to enhance operational integration, while new business opportunities in Digital Infrastructure continue to expand.

Spark Power Group has launched the Be Powerful scholarship, supported by a $5.3M grant from the Government of Ontario's Skills Development Fund. This initiative aims to assist six Ontario students from underrepresented communities in pursuing careers in high voltage, low voltage, and electrician training within the renewable energy sector. Applications are open until October 15, 2021. The scholarship emphasizes the importance of training skilled workers to meet the growing demand in the power industry, ensuring a strong workforce for Ontario's future.

Spark Power Group Inc. announced a strong second quarter financial performance with revenues increasing 41.1% year over year to $65.4 million. The Renewables segment saw a significant growth of 44.1% in Q2. Despite these gains, gross margins dropped to 28.5% from 40.9% in the previous year. The company expects continued growth supported by a strong backlog and enhanced liquidity from a $5.6 million private placement. New leadership appointments and a focus on sustainability initiatives are also highlighted.