Wednesday, August 31, 2016
Alterra power initiates dividend and announces share consolidation
Alterra Power Corp. ("Alterra") is pleased to announce that its Board of Directors has approved plans for an annual cash dividend of $0.005 per common share, payable quarterly commencing in the fourth quarter of 2016. The record date and other details will be announced separately. Additionally, Alterra's Board of Directors has approved a consolidation of its issued and outstanding common shares on the basis of one (new) post-consolidation common share for each ten (old) pre-consolidation common shares, subject to approval of the Toronto Stock Exchange.
Upon completion of the consolidation the annual dividend will be adjusted to $0.05 per common share. John Carson, Alterra's CEO, said, "This inaugural dividend reflects the recent completion and incremental cash flow of the Shannon and Jimmie Creek projects, but is sized modestly for now to accommodate the substantial growth we anticipate over the next four years.
We will target regular increases of the dividend as we bring new projects on line. The share consolidation brings us into line with many of our peer independent power producers and will provide better access to the company's shares for certain investors. I am pleased with our recent successes and our strong position for further growth in the USA."
This news confirms our reasoning when we bought the stock over a year ago. The company is now a dividend payer and has stated it will be increasing the dividend as new projects come online. In addition the share consolidation is normally a bad thing but in this case we have a solid company and the share price will now be above $5 which is the threshold for many institutional investors.
I like the fact the company has a mix of renewable assets and this is a long term investment holding for me.