LAKE FOREST, Calif., May 29, 2013 /PRNewswire/ -- Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW), a global leader in natural gas storage systems, integration and vehicle system technologies, announced today that it, its wholly owned subsidiary, Schneider Power Inc. and certain of Schneider Power Inc.'s wholly-owned subsidiaries, have entered into definitive agreements with an unrelated third party for the sale of Schneider Power's 10 Megawatt (MW) Trout Creek wind farm development project (the "Trout Creek Project").
The sale of the Trout Creek Project will occur in two phases. The first phase ("Phase 1") will result in the purchaser acquiring 74.9% of the ownership interests in the Trout Creek Project for an aggregate purchase price of Canadian Dollar (CAD) $1,207,959, of which CAD $971,250 will be paid in cash on the closing of Phase 1 and CAD $236,709 will be paid by the purchaser's assumption of certain Trout Creek Project liabilities. The second phase ("Phase 2") will result in the purchaser acquiring the remaining 25.1% of the ownership interest in the Trout Creek Project (the "25% Interest") for a purchase price of CAD $1,143,750 upon the exercise by the purchaser of an irrevocable option to purchase the 25% Interest (the "Purchase Option"). The Purchase Option will be granted to the purchaser upon the closing of Phase 1 and must be exercised if and when the development of the Trout Creek Project is completed and the wind farm begins commercial operation.
Phase 1 is expected to close in approximately 4 to 6 weeks, subject to the parties' satisfaction or waiver of customary closing conditions and the parties' receipt from the Ontario Power Authority (the "OPA") of an acknowledgement that an event of default under the the Feed-In-Tariff contract issued by the OPA in connection with the Trout Creek Project has not occurred or, if an event of default has occurred, a waiver from the OPA of such event of default. Phase 2 is expected to close within approximately 18 to 24 months, subject to (among other things) the Trout Creek Project achieving commercial operation.