Spark Power Announces Extension with the Bank of Montreal

Rhea-AI Summary

Spark Power Group Inc. has secured an extension on its non-revolving term loan and revolving acquisition line from the Bank of Montreal, now maturing on June 30, 2022. This extension allows the company to reclassify its outstanding amounts as long-term liabilities, aiding in financial stability. Spark Power is a notable provider of electrical contracting and energy sustainability solutions across North America.

Positive

• Loan extension provides financial flexibility until June 30, 2022.
• Reclassification of loans to long-term liabilities improves balance sheet appearance.

Negative

• Dependency on extended loan may indicate financial instability or inability to meet short-term liabilities.

OAKVILLE, ON / ACCESSWIRE / March 12, 2021 / Spark Power Group Inc. ("Spark Power" or the "Company") (TSX:SPG) today announced that the Bank of Montreal and Spark Power has agreed to extend the maturity date of its existing non-revolving term loan and revolving acquisition line to June 30, 2022. As a result, all amounts outstanding on these loans will again be presented as long-term liabilities in the Company's financial statements in relation to periods ended after the date of this extension, to the extent repayments are not then due within 12 months.

About Spark Power
Spark Power, a wholly owned subsidiary of Spark Power Group Inc. (TSX:SPG), is a leading independent provider of end-to-end electrical contracting, operations and maintenance services, and energy sustainability solutions to the industrial, commercial, utility, and renewable asset markets in North America. We work to earn the right to be our customers' Trusted Partner in Power™. Our highly skilled and dedicated people, located in the communities we serve, combined with our knowledge of the power industry, technology expertise, and commitment to safety, ensures we deliver the right solutions that keep our customers' operations up and running today and better equipped for tomorrow. Learn more at www.sparkpowercorp.com.

Investor and Regulatory Inquiries
Dan Ardila, Executive Vice President & Chief Financial Officer
dardila@sparkpowercorp.com
+1 (905) 829-3336 x127

Media Inquiries
Kim Samlall, Director, Marketing Communications
media@sparkpowercorp.com
+1 (905) 829-3336 x185

SOURCE: Spark Power Group Inc.

View source version on accesswire.com:
https://www.accesswire.com/635114/Spark-Power-Announces-Extension-with-the-Bank-of-Montreal

FAQ

What did Spark Power announce on March 12, 2021?

Spark Power announced a loan maturity extension with the Bank of Montreal to June 30, 2022.

How does the loan extension affect Spark Power's financials?

The extension allows Spark Power to classify its outstanding loans as long-term liabilities, improving its balance sheet.

What is the significance of the loan extension for investors of SKPGF?

The loan extension may provide temporary financial stability but raises concerns about the company's immediate financial health.