The town of Blind River has just completed a prepayment of $4 million to Canadian Mortgage and Housing Corporation (CMHC) to reduce its long-term liabilities that are not due until April 2037. The payment is not ratepayer generated.
The payment is part of a 2010, $49.5 million CMHC loan the town took on as an investor in the former Plasco Energy Group which has been rebranded Omni Conversion Technologies Inc. The initial loan was part of a federal government municipal infrastructure loan program.
“It’s basically like a mortgage,” Mayor Sally Hagman said. “By paying down $4 million now on the loan that is due in 2037 we reduce the amount owed on the balloon payment substantially.”
The announcement on the payment was issued in a news release by town CAO-clerk Katie Scott on Friday.
“This is a significant milestone in the history of Blind River. Mayor and council have gone through some turbulent times since 2010 but the page has turned, and we feel confident going forward that we are on the right path,” Mayor Hagman stated.
The payment was made from North Shore Power Group (NSPG) revenue. NSPG is owned by the town and operates a solar panel facility which sells power to the province.
Since 2011, NSPG has built a portfolio of 124 solar power projects across Ontario from Ottawa to Rainy River with a total installed capacity of 4.34 megawatts.
Revenues from its combined operations have enabled NSPG to issue this prepayment, in addition to paying to Blind River regular annual payments on the base loan.
“North Shore Power Group operations include the administration of its 2011 investment in Plasco. Plasco Conversion Technologies Inc. changed its name to Omni Conversion Technologies Inc. on Jan. 1, 2021. During the past year, a massive change in market sentiment towards a carbon neutral economy has occurred. There is renewed interest in OMNI’s technology, and the company has gathered a group of powerful financial sponsors and strategic partners," the news release stated.
In April of 2021, Omni Conversion Technologies entered into an agreement with the Larsen-Lam Climate Change Foundation to sell its first commercial unit for USD $35 million.
On Dec. 17, 2021, Omni Conversion Technologies entered into a debt restructuring agreement. Under this agreement, provided Omni meets its obligations, NSPG will receive sufficient funds to repay its entire loan to the town of Blind River and thus the remainder of the CMHC borrowings.
“The Omni technology has the potential to make a significant environmental difference in this world. As such, it fits with our cleantech business strategy. It appears that Omni’s time has arrived as the world addresses climate change. Everyone at our power company wishes them every success, while we continue to focus on our mandate of producing green energy for the benefit of our community,” said Graeme Lowry, President and CEO of NSPG.
Graeme Lowry will be giving a presentation on North Shore Power Group and OMNI Conversion Technologies at the Town of Blind River Information Session set for Feb. 15, 2022.
For more information on how to connect to the Zoom link for the Information Session, go to the town of Blind River website.