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SolarBank Corporation (“SolarBank” or the “Company”) reports its fiscal third quarter and fiscal 2025 interim financial results. All financial figures are in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS) as presented in the interim consolidated financial statements. Fiscal Year-to-Date Financial Highlights (All amounts are for the nine-months period ended March 31, 2025) IPP revenue increased from $0.3 million to $6.6 million during the period. Gross profit was $5.8 million, or 19.9% of revenues, compared to $10.3 million, or 20.4% of revenues in 2024. Adjusted EBITDA(1) of $ (0.02) million compared to $2.3 million for 2024. Growth in assets increased 395% to $194 million following Solar Flow-Through Funds Ltd. Acquisition, as compared to $39.2 million at June 30, 2024. Revenues were $29.1 million compared to $50.4 million in 2024. Cash flow from operating activities was $(2.1) million compared to $10.9 million in 2024 Net loss of $9 million, or $(0.29) per basic share, compared to net income of $5.5 million, or $0.20 per basic share in in 2024. Corporate Third Quarter Highlights and Milestones: The Company announced that its 3.26 MW Camillus Solar Project has been sold to, and will now be constructed for, Solar Advocate Development LLC in a transaction valued at US$7.3 million. Commenced construction on first battery energy storage (“BESS”) project in Ontario, backed by a $25.8 million Royal Bank of Canada Project Finance facility. Announced partnership with Viridi, the industry leader in fail-safe BESS, on the development of a combined 3.06 MW DC ground-mount solar power project and related 1.2 MWH BESS in Buffalo, New York. After the quarter ended announced that CIM Group (“CIM”), a real estate and infrastructure owner, operator, lender and developer, and the Company have entered into a Mandate Letter providing for up to US$100 million in project based financing for a portfolio of up to 97 MW of solar power projects located in the United States (the “CIM Transaction”). Dr. Richard Lu, President and CEO of SolarBank commented: “SolarBank continues the growth of its independent power producer portfolio. The non-dilutive CIM transaction will provide up to US$100 million in equity capital for projects that will transform SolarBank’s independent power producer asset base, creating long term revenues for years to come. As discussed in prior quarters this strategy means less short term revenue from EPC and project sales, but will have the benefit of stable long term recurring revenues.” The Company ended the third quarter of fiscal 2025 with $45.3 million in current assets (including $24.7 million in cash and short term investment), as compared to $17.6 million in current assets as of year-end June 30, 2024. The increase is principally the result of the closing of the acquisition of SFF. Current liabilities increased from $13.4 million as of the year ended June 30, 2024, to $40.1 million in the current quarter, mainly due to an increase in trade and other payables and the short term debt. For complete details please refer to the unaudited condensed interim consolidated financial statements and associated Management Discussion and Analysis for the nine months ended March 31, 2025, available on SEDAR+ (https://www.sedarplus.ca). The Company notes that the execution of the Company’s growth strategy depends upon the continued availability of third-party financing arrangements for the Company and its customers and the Company’s future success depends partly on its ability to expand the pipeline of its energy business in several key markets. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power, which could cause demand for the Company’s services to decline. Further the forecasted MW capacity of a solar project may not be reached. The CIM Transaction is subject to the execution of definitive documentation setting out all of the representations, warranties, covenants and conditions precedent associated with the CIM Transaction. There is a risk that definitive documentation may not be executed or that the conditions precedent to the CIM Transaction are not satisfied. In such case, no funding will be advanced under the terms of the CIM Transaction. SolarBank will also need to secure the financing required to develop the projects to mechanical completion and substantial completion, as prior to such milestone none of the funding from the CIM Transaction will be available. Please refer to “Forward-Looking Statements” for additional discussion of the assumptions and risk factors associated with the statements in this press release. Conference Call May 15, 2025, at 4:30 PM ET The Company will review financial results and provide a business update. Interested parties can register for the webinar by clicking here. After registering, you will receive a confirmation email containing information about joining the webinar. |
