Golden Opportunities completes $10 million investment
Release Date: October 21, 2008
For Immediate Release Saskatoon, Saskatchewan October 21, 2008
Golden Opportunities Completes $10 Million Investment In Saskatchewan Gas Marketing Partnership
Golden Opportunities Fund Inc. (“Golden Opportunities” or the “Fund”) is pleased to announce that it has completed a $10,000,000 investment in Connect Energy Partnership (“Connect Energy”) by way of a first charge secured debenture (the “Debenture”) bearing interest at a rate of 6% per annum. In tandem with the granting of the Debenture, Golden Opportunities purchased an equity interest in Connect Energy Holdings Ltd., a partner of Connect Energy, for $0.90, resulting in Golden Opportunities holding an overall 18% interest in Connect Energy. The funds advanced pursuant to the Debenture will be used by Connect Energy for natural gas inventory purchases.
Connect Energy is a Saskatchewan partnership focused on supplying natural gas to commercial and institutional clients by way of long term, fixed price contracts. The partnership was launched with substantial market acceptance with more than $150 million in natural gas purchase commitments from 3000+ customer locations, addressing the void left by CEG Energy Options Inc., a subsidiary of a parent company based in the United States.
Grant Kook, CEO/Chairman of Golden Opportunities indicates “Golden Opportunities has been investing in Saskatchewan now for over a decade. The opportunity to launch Connect Energy with a $10 million commitment from the Fund confirms our confidence in this experienced and proven management team and the potential returns of this transaction in a high-growth sector. The ability to provide long term, fixed price natural gas supply to Saskatchewan businesses is a tremendous opportunity for Golden Opportunities and its shareholders.”
Connect Energy is a natural gas marketer that secures a wholesale supply of fixed price natural gas and in turn enters into long term fixed price contracts with its customers. SaskEnergy Inc. continues to handle the distribution and billing of natural gas within its infrastructure. Connect Energy has aligned itself with a world class, “triple A” credit energy company that plays a strategic role in the supply of natural gas to Connect Energy and the elimination of hedging risks to Connect Energy. Connect Energy provides similar services to other well known companies in other jurisdictions in Canada and North America like Direct Energy, Energy Savings Income Fund and ENMAX Energy.
Mr. Roger Magneson, with Connect Energy, quotes “On behalf of our management team who have been in this business collectively for over 50 years in the Province of Saskatchewan we are very excited to serve the business community with fixed priced natural gas supply contracts eliminating the volatility in natural gas prices in their businesses. The large customer load that we have at the outset of the operation reaffirms businesses want to eliminate the risk and uncertainty of rising energy costs.”
Golden Opportunities is Saskatchewan’s first and largest Provincial Labour-sponsored Investment Fund, having raised over $130 million in share capital to date from approximately 17,000 shareholders. The Fund, in the past decade of investing, has completed over 100 investment transactions in 75 different Saskatchewan growth companies across 13 different industry sectors for diversification, thereby directly impacting the future of Saskatchewan.
For further information, please contact Grant Kook, CEO/Chairman of Golden Opportunities Fund Inc. at (306) 652-5557
The Saskatchewan Financial Services Commission has neither approved nor disapproved the information contained herein.