AAERF - big news that in normal...
times would have shot the stock up:
AAER Signs Reservation Agreement with Mont Louis Wind L.P. for 61 A-1650 Wind Turbines
Tuesday , October 07, 2008 07:30ET
MONTREAL, Oct. 7, 2008 (Canada NewsWire via COMTEX) -- AAER Inc. (TSX-V: AAE) ("AAER" or the "Company"), Canada's only original equipment manufacturer of wind turbines of 1 megawatt ("MW") and more, announced today that it has signed a Reservation Agreement (the "Agreement") for 61 1.65MW wind turbines to be delivered to Mont Louis Wind L.P., represented by NPI Wind Power GP II Inc. and Northland Power Wind GP II Inc., for its 100MW wind farm project in Saint-Maxime-du-Mont-Louis, Québec, Canada (the "Mont Louis Project"). The 61 A-1650s are scheduled for delivery during the third quarter of 2010.
"This agreement is a milestone for AAER as it represents the lead order for our new 1.65MW A-1650 wind turbine and provides important validation of our turbine technology and production capacity. It also strengthens our order backlog and provides excellent visibility on our long-term supply chain, as we start ramping up production in Q4 2008 toward our production goals for 2009 and 2010," said Dave Gagnon, President and CEO of AAER. "We are pleased to be working with a proven developer like Northland Power and look forward to delivering wind turbines in our home market in the near future."
The reservation agreement enables Mont Louis Wind L.P. to secure a manufacturing and delivery schedule for the 61 A-1650 wind turbines while a Turbine Supply Agreement ("TSA") and Warranty, Maintenance & Service Agreement ("WMSA") are being agreed upon by Mont Louis Wind L.P. and AAER. Mont Louis Wind L.P. and AAER have agreed on a "cost plus" structure for the supply of the wind turbines. The final pricing and other terms and conditions will be set at the signature of the TSA. The overall sale price is currently estimated at approximately $142 million. The conditions to be met by AAER and Mont Louis Wind L.P. before the execution of a definitive TSA include evidence of the required financing by both parties, agreement on a definitive delivery and payment schedule and technical due diligence to be performed by a third party for financing purposes. AAER and Mont Louis Wind L.P. expect to execute the TSA and the WMSA within 120 days of the signature of the reservation agreement.
The A-1650 is an optimized version of AAER's existing Germanischer Lloyd-certified 1.5MW A-1500 wind turbine and its addition to the Company's product portfolio enables AAER to offer a high degree of customization for each potential project, as well as competitive pricing for a range of different project configurations. AAER's A-1650 is a 1.65MW wind turbine licensed from AMSC Windtec(TM), a subsidiary of American Superconductor Corporation (NASDAQ: AMSC).
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About AAER Inc.
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AAER is a wind turbine manufacturer located in Bromont, Quebec that manufactures and maintains high capacity 1 Megawatt or more wind turbines principally for the North American market. Its strategy is to progressively build its product's components to provide a high level of reliability and competitive pricing to its customers. AAER uses a portfolio of proven European technologies to ensure the performance of its turbines in various wind conditions and terrains. Its stock is listed on the TSX Venture Exchange (TSX-V: AAE). Additional information is available on the Company's website at www.aaer.ca.
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