OAKVILLE, ON / ACCESSWIRE / March 10, 2021 / Spark Energy Group Inc. (“Spark Energy” or the “Firm”) (TSX: SPG) immediately offered an replace to its March 5, 2021 press launch, during which Spark Energy has introduced that it’s going to file once more its unaudited condensed interim monetary statements for the three and 9 month durations ended September 30, 2020 (the “beforehand filed interim monetary statements”) in addition to the corresponding administration report (the “beforehand filed interim administration report”) .
Amended and up to date interim monetary statements
As an replace to the March 5, 2021 press launch, the corporate supplies the next extra particulars:
In reference to the submitting of the prospectus in respect of the providing, Spark Energy has engaged its auditors to carry out a evaluation of the beforehand filed interim monetary statements and the beforehand filed interim MD&A. In the course of the auditor’s evaluation, the corporate recognized a steadiness sheet classification error.
The classification error pertains to the remedy of the Firm’s non-revolving time period mortgage and revolving acquisition line, totaling roughly $ 38.3 million and $ 24.4 million, respectively, which have been categorized as liabilities. long-term; being money owed with a maturity of a couple of 12 months from the date of the statements. The maturity of those money owed was indicated within the interim monetary statements filed previous to September 30, 2027. Nonetheless, each loans are successfully due and payable on September 30, 2021, with amortization ending in September 2027. For the reason that money owed arrive successfully maturing precisely one 12 months from the date of the beforehand filed interim monetary statements, they should be introduced as present liabilities on the steadiness sheet.
Consequently, the full quantities drawn on these services should be introduced as present liabilities as at September 30, 2020 and the interim monetary statements beforehand filed can be amended and restated to mirror this alteration in categorization (the “Monetary Statements”), the associated notes made. and an amended and up to date MD&A and evaluation (the “Amended MD&A”) thereon can even be re-filed.
This reclassification of the steadiness sheet doesn’t change the working outcomes for the interval, nor the full belongings or liabilities on the finish of the interval, as introduced by the corporate.
On account of this alteration in categorization, the amended and up to date interim monetary statements should embrace a observe indicating that there’s a stage of uncertainty that will solid doubt on the flexibility of the corporate to proceed as a going concern. The corporate believes it has the suitable plans to mitigate the aforementioned occasion, however these plans are usually not but full.
Commentary on debt maturities and mortgage syndication
As an additional replace on the corporate’s debt syndication course of with its main lender, the corporate supplies the next particulars:
The Firm’s main lender is Financial institution of Montreal (“BMO”).
The corporate started discussions with BMO about syndicating its credit score facility in early 2020. With the outbreak of the pandemic, this course of was placed on maintain till the rest of 2020.
Throughout this time, the corporate labored with BMO to safe modifications to its current credit score facility to assist the corporate by means of the robust instances introduced on by the pandemic, and the corporate has repeatedly managed underneath these modified phrases.
The target of the syndication course of is to refinance the aforementioned non-revolving time period mortgage, the revolving acquisition line and all credit score services into long term credit score services and to increase the Firm’s debt services. to help the long run development of the corporate.
As an interim step in syndication, BMO is at the moment searching for to increase the maturity date of the non-revolving time period mortgage and revolving acquisition line from September 30, 2021 to June 30, 2022. Whereas there may be no assurance that the due date can be prolonged, Spark Energy expects the extension to be formalized efficiently this week.
If BMO approves the extension of those maturities, all quantities overdue on these loans will once more be introduced as long-term liabilities within the Firm’s monetary statements with respect to durations ended after the date of such extension, to the extent that refunds are usually not right now. due inside 12 months.
Standing of the bought supply
On February 18, 2021, the Firm introduced that it had entered into an settlement to finish a $ 20.0 million public providing (the “Providing”) of seven.50% convertible unsecured subordinated debentures maturing in 2026 with a syndicate of underwriters (the “Underwriters”). ) run by Raymond James Ltd. As an additional replace to the position, the corporate supplies the next particulars:
The Firm is in ongoing discussions with the Underwriters relating to the completion of the Providing.
The location is not going to shut on March 11, 2021 as initially deliberate.
The Supply has not been terminated, however there may be no assurance that the Supply can be accomplished, on the phrases at the moment marketed, or under no circumstances.
The Firm will present additional info on the submitting of amended and restated interim monetary statements, its amended MD&A and particulars of the providing as extra info turns into obtainable.
About Spark Energy
Spark Energy, a completely owned subsidiary of Spark Energy Group Inc. (TSX: SPG), is a number one impartial supplier of end-to-end electrical outsourcing, operation and upkeep companies and options. vitality sustainability for the economic, industrial, utility, and renewable asset markets in North America. We work to earn the appropriate to be our clients’ trusted associate in Energy ™. Our extremely expert and devoted staff, positioned within the communities we serve, mixed with our data of the vitality trade, our technological experience and our dedication to security, make sure that we ship the appropriate options that preserve our clients’ operations now operational and higher geared up. for tomorrow. Study extra about www.sparkpowercorp.com.
Investor and regulatory inquiries
Dan Ardila, Govt Vice President and Chief Monetary Officer
+1 (905) 829-3336 ext 127
Kim Samlall, Director, Advertising and marketing Communications
+1 (905) 829-3336 ext. 185
SOURCE: Spark Energy Group Inc.
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