Ballard Announces Sale-Leaseback for Cash Proceeds of C$20.8 Million
VANCOUVER- – Ballard Power Systems (TSX: BLD; NASDAQ: BLDP) announced that it has entered into a sale-and-leaseback agreement with Madison Pacific Properties Inc. (TSX: MPC) (www.madisonpacific.ca). Ballard will sell its head office building site in Burnaby, British Columbia in return for gross cash proceeds of approximately C$20.8 million (US$19.5 million). The company will also enter into an initial fifteen-year lease agreement for the same property. The transaction is expected to close on March 9, 2010.
Bruce Cousins, Ballard’s Chief Financial Officer, said, “This transaction presented an opportunity to extract cash from a non-core asset and further fortify our strong balance sheet, augmenting the company’s cash reserves to approximately $100 million. At the same time, Ballard’s continued use of the site is secured through a long-term lease arrangement.”
John Sheridan, Ballard’s President & CEO, added, “This transaction, along with the monetization of our Share Purchase Agreement and our progress in market development in 2009, has positioned Ballard for strong performance in 2010. We continue to expect revenue growth in excess of 35% and improved cash flow from operations by 30% in 2010, and positive EBITDA performance during 2011.”
About Ballard Power Systems
Ballard Power Systems (TSX: BLD; NASDAQ: BLDP) provides clean energy fuel cell products enabling optimized power systems for a range of applications. To learn more about Ballard, please visit www.ballard.com.
