Announcement • Dec 06
American Pacific Group, L.P. completed the acquisition of Spark Power Group Inc. (TSX:SPG) from Red Jar Capital Corp. and Others. American Pacific Group, L.P. entered into an arrangement agreement to acquire Spark Power Group Inc. (TSX:SPG) from Red Jar Capital Corp. and Others for CAD 79.5 million on October 13, 2023. Under the terms of the transaction, American Pacific Group, L.P. will pay CAD 0.825 per share in an all-cash transaction valued at approximately CAD 140 million (including assumed debt). Upon closing of the Transaction, it is expected that the Shares of Spark Power will be delisted from the TSX and that it will cease to be a reporting issuer under applicable Canadian securities laws. The transaction also involves a termination fee of CAD 2.7 million payable by Spark Power if the Company accepts a superior proposal. In connection with the Arrangement, the Purchaser and certain affiliates of American Pacific Group, LP (the "Equity Funding Parties") have entered into an equity commitment letter, pursuant to which such Equity Funding Parties have committed to, among other things, provide the Purchaser with the funds necessary to allow the Purchaser to pay the aggregate Consideration and have guaranteed certain other payments required to be made by the Purchaser pursuant to the Arrangement Agreement in certain circumstances.
The transaction is subject to approval by Spark Power shareholders, court approval and is unanimously approved by board of directors of Spark Power, having received unanimous recommendation from a special committee comprised solely of independent directors of Spark Power. As per the filling on November 10, 2023, Spark Power Group announced the special meeting of Shareholders scheduled to be held on December 1, 2023. As of December 1, 2023, shareholders of Spark Power approved the proposed plan of arrangement. The transaction is expected to close in December 2023. The Arrangement is expected to become effective on or about December 5, 2023, subject to, among other things, Spark Power obtaining a final order from the Ontario Superior Court of Justice and the satisfaction or waiver of certain other customary closing conditions.
MPA Morrison Park Advisors Inc. is acting as financial advisor as well as fairness opinion provider to the Special Committee. Kris Hanc of Bennett Jones LLP is acting as legal advisor to the Special Committee. John Lee, Khalfan Khalfan, Justin Parappally, Natasha vandenHoven, Ramandeep K. Grewal, Alethea Au and Jeilah Chan of Stikeman Elliott LLP and Joseph D.Hatina of Jones Day are acting as legal advisors to American Pacific Group. Grant McGlaughlin and Justine Connors of Fasken Martineau DuMoulin LLP acted as legal advisor to Red Jar Capital Corp.
American Pacific Group, L.P. completed the acquisition of Spark Power Group Inc. (TSX:SPG) from Red Jar Capital Corp. and Others on December 5, 2023. Spark Power obtained a final order from the Ontario Superior Court of Justice (Commercial List) approving the Arrangement on December 4, 2023. Announcement • Nov 09
Spark Power Group Inc. to Report Q3, 2023 Results on Nov 13, 2023 Spark Power Group Inc. announced that they will report Q3, 2023 results After-Market on Nov 13, 2023 Announcement • Oct 17
Spark Power, American Pacific Enter Go-Private Deal Spark Power Group Inc. has entered into an arrangement agreement with Generator-Spark Canada Buyer Inc., an affiliate of American Pacific Group LP, pursuant to which the purchaser will acquire all of the issued and outstanding common shares of Spark Power for a price of 82.5 cents per share in an all-cash transaction valued at approximately $140-million (including assumed debt). Subject to the satisfaction of all conditions to closing set out in the Arrangement Agreement, it is anticipated that the Transaction will be completed in December 2023. Upon closing of the Transaction, it is expected that the Shares will be delisted from the TSX and that the Company will cease to be a reporting issuer under applicable Canadian securities laws. Reported Earnings • Aug 14
Second quarter 2023 earnings released: CA$0.02 loss per share (vs CA$0.02 loss in 2Q 2022) Second quarter 2023 results: CA$0.02 loss per share (in line with 2Q 2022). Revenue: CA$66.2m (down 6.3% from 2Q 2022). Net loss: CA$1.82m (loss widened 34% from 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. Announcement • Aug 03
Spark Power Group Inc. to Report Q2, 2023 Results on Aug 10, 2023 Spark Power Group Inc. announced that they will report Q2, 2023 results After-Market on Aug 10, 2023 Board Change • May 31
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Joe Quarin was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • May 26
Spark Power Group Inc. Announces Lucio Di Clemente, a Director and Chairman of the Board of Directors Made the Decision Not to Stand for Reelection Spark Power Group Inc. announced that Lucio Di Clemente, a Director and Chairman of the Board of Directors made the decision not to stand for reelection for personal reasons. Reported Earnings • May 13
First quarter 2023 earnings released: CA$0.03 loss per share (vs CA$0.036 loss in 1Q 2022) First quarter 2023 results: CA$0.03 loss per share (improved from CA$0.036 loss in 1Q 2022). Revenue: CA$65.8m (down 6.0% from 1Q 2022). Net loss: CA$2.34m (loss narrowed 28% from 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 31% per year, which means it has not declined as severely as earnings. Announcement • May 09
Spark Power Group Inc. to Report Q1, 2023 Results on May 12, 2023 Spark Power Group Inc. announced that they will report Q1, 2023 results at 4:00 PM, US Eastern Standard Time on May 12, 2023 Reported Earnings • Apr 02
Full year 2022 earnings released: CA$0.12 loss per share (vs CA$0.47 loss in FY 2021) Full year 2022 results: CA$0.12 loss per share (improved from CA$0.47 loss in FY 2021). Revenue: CA$272.3m (up 11% from FY 2021). Net loss: CA$11.0m (loss narrowed 59% from FY 2021). Revenue is forecast to grow 3.7% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Renewable Energy industry in Canada. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. Price Target Changed • Nov 16
Price target decreased to CA$1.25 Down from CA$2.00, the current price target is provided by 1 analyst. New target price is 119% above last closing price of CA$0.57. Stock is down 69% over the past year. The company posted a net loss per share of CA$0.37 last year. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: CA$0.02 (vs CA$0.042 loss in 3Q 2021) Third quarter 2022 results: EPS: CA$0.02 (up from CA$0.042 loss in 3Q 2021). Revenue: CA$70.9m (up 2.8% from 3Q 2021). Net income: CA$1.39m (up CA$3.78m from 3Q 2021). Profit margin: 2.0% (up from net loss in 3Q 2021). Revenue is forecast to grow 7.3% p.a. on average during the next 2 years, compared to a 3.4% growth forecast for the Renewable Energy industry in Canada. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. Announcement • Nov 03
Spark Power Group Inc. to Report Q3, 2022 Results on Nov 14, 2022 Spark Power Group Inc. announced that they will report Q3, 2022 results After-Market on Nov 14, 2022 Announcement • Oct 29
An unknown buyer entered into a binding agreement to acquire Bullfrog Power Inc. from Spark Power Group Inc. (TSX:SPG) for CAD 35 million. An unknown buyer entered into a binding agreement to acquire Bullfrog Power Inc. from Spark Power Group Inc. (TSX:SPG) for CAD 35 million on October 28, 2022. The consideration of up to CAD 35.0 million, subject to customary adjustments, includes an earnout of up to CAD 3.5 million, payable over a maximum of five years. The transaction is subject to the Purchaser securing financing for the transaction and other customary closing conditions. In addition, the transaction closing is subject to approval of Spark Power's lender, for which they do not anticipate any delays. The transaction is anticipated to close on or about November 15, 2022. Proceeds from the transaction are expected to be used to reduce Spark Power's debt and fund working capital needs. Reported Earnings • Aug 12
Second quarter 2022 earnings released: EPS: CA$0.01 (vs CA$0.004 in 2Q 2021) Second quarter 2022 results: EPS: CA$0.01 (up from CA$0.004 in 2Q 2021). Revenue: CA$72.9m (up 12% from 2Q 2021). Net income: CA$467.0k (up 199% from 2Q 2021). Profit margin: 0.6% (up from 0.2% in 2Q 2021). Over the next year, revenue is forecast to grow 7.9%, compared to a 7.1% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Announcement • Aug 06
Spark Power Group Inc. to Report Q2, 2022 Results on Aug 11, 2022 Spark Power Group Inc. announced that they will report Q2, 2022 results After-Market on Aug 11, 2022 Announcement • May 28
Lorie Waisberg Resigns from the Board of Directors of Spark Power Group Inc Spark Power Group Inc. announced that Lorie Waisberg resigned from the Board of Directors effective April 29, 2022, and he is not standing for reelection. Reported Earnings • May 15
First quarter 2022 earnings released First quarter 2022 results: Revenue: CA$70.0m (up 25% from 1Q 2021). Net loss: CA$3.26m (loss widened 358% from 1Q 2021). Over the next year, revenue is forecast to grow 5.9%, compared to a 11% growth forecast for the industry in Canada. Announcement • May 10
Spark Power Group Inc. to Report Q1, 2022 Results on May 13, 2022 Spark Power Group Inc. announced that they will report Q1, 2022 results After-Market on May 13, 2022 Announcement • Apr 28
Spark Power Group Inc. Announces Changes to Board of Directors Spark Power Group Inc. announced the changes to its Board of Directors, effective April 27, 2022: Larry Taylor, former lead independent director, resigned from the Board. Dan Ardila, a non-independent director, resigned from the Board. Lorie Waisberg was appointed to the Board as an independent director. Jason Sparaga resigned as Board Chair and will continue forward as a non-independent director. Lucio Di Clemente, current independent director, was appointed Board Chair. Price Target Changed • Apr 27
Price target decreased to CA$2.00 Down from CA$3.00, the current price target is provided by 1 analyst. New target price is 163% above last closing price of CA$0.76. Stock is down 56% over the past year. The company posted a net loss per share of CA$0.37 last year. Reported Earnings • Apr 01
Full year 2021 earnings released: CA$0.38 loss per share (vs CA$0.031 loss in FY 2020) Full year 2021 results: CA$0.38 loss per share (down from CA$0.031 loss in FY 2020). Revenue: CA$255.8m (up 12% from FY 2020). Net loss: CA$20.8m (loss widened CA$19.1m from FY 2020). Over the next year, revenue is forecast to grow 14%, compared to a 9.8% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Price Target Changed • Mar 06
Price target increased to CA$3.00 Up from CA$2.75, the current price target is provided by 1 analyst. New target price is 159% above last closing price of CA$1.16. Stock is down 41% over the past year. The company posted a net loss per share of CA$0.031 last year. Recent Insider Transactions Derivative • Feb 04
Independent Director exercised options to buy CA$127k worth of stock. On the 31st of January, Joseph Quarin exercised options to buy 100k shares at a strike price of around CA$1.20, costing a total of CA$120k. This transaction amounted to 10% of their direct individual holding at the time of the trade. Since June 2021, Joseph has owned 966.50k shares directly. Company insiders have collectively bought CA$251k more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Feb 01
Spark Power Group Inc. has completed a Follow-on Equity Offering in the amount of CAD 30 million. Spark Power Group Inc. has completed a Follow-on Equity Offering in the amount of CAD 30 million.
Security Name: Common Shares
Security Type: Common Stock
Securities Offered: 25,000,000
Price\Range: CAD 1.2
Transaction Features: Rights Offering Announcement • Dec 17
Spark Power Group Inc. has filed an IPO in the amount of CAD 30 million. Spark Power Group Inc. has filed an IPO in the amount of CAD 30 million.
Security Name: Common Shares
Security Type: Common Stock
Securities Offered: 25,000,000
Price\Range: CAD 1.2
Transaction Features: Rights Offering Reported Earnings • Nov 18
Third quarter 2021 earnings released: CA$0.05 loss per share (vs CA$0.04 profit in 3Q 2020) The company reported a soft third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: CA$69.0m (up 12% from 3Q 2020). Net loss: CA$2.39m (down 215% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 130% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CA$0.004 (vs CA$0.03 in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: CA$65.4m (up 41% from 2Q 2020). Net income: CA$156.0k (down 87% from 2Q 2020). Profit margin: 0.2% (down from 2.7% in 2Q 2020). Announcement • Jun 30
Spark Power Group Inc. announced that it has received CAD 5.599999 million in funding Spark Power Group Inc. (TSX:SPG) announced that it has received a non-brokered private placement of 2,654,028 common shares at a price of CAD 2.11 per share for the gross proceeds of CAD 5,600,000 on June 28, 2021. The transaction included participation from leading returning investors Andrew Clark, Eric Waxman, Jason Sparaga and other members of the Company’s senior executive team. On post completion, each of Jason Sparaga and Andrew Clark holds 12,012,073 Common Shares and options to purchase 189,000 common shares, and Eric Waxman holds 1,566,651 common shares, options to purchase 308,000 common shares and RSUs representing 355,859 common shares. Collectively with Red Jar Capital, the three individuals control 27,249,566 Common Shares, options to purchase 686,000 Common Shares and RSUs representing 355,859 Common Shares, representing approximately 48.4% of the issued and outstanding Common Shares on a non-diluted basis and representing approximately 49.3% of the issued and outstanding Common Shares on a partially diluted basis. Announcement • May 21
Spark Power Group Inc. Announces a New $5.3 Million Grant from the Government of Ontario's Skills Development Fund Spark Power Group Inc. announced a new $5.3 million grant from the Government of Ontario's Skills Development Fund, which will support employee training and advancement initiatives within the Company. With this funding, Spark is running a one-year program between April 2021 and March 2022 that will support its current and future employees in the following ways: Invest in the development and launch of "SparkU", a centralized space for Spark Power employees to learn, contribute, and hone their skills throughout their career life cycle. Utilize hands-on, state-of-the-art tools, such as virtual reality, to help enhance educational modules in the field and at the company's new Spark Campus training center, set for completion in 2022. Expand the company's training platform by offering virtual reality training and other online tools for remote
employees. Create opportunities for the company's employees to participate in the development of Spark-specific training modules that reflect Spark's various areas of technical expertise, including low voltage, medium voltage, high voltage, and renewables services. Significantly enhance on-the-job training for Spark's apprentices in the field. Allow the Company to have greater community impact at the high school and post-secondary levels through a scholarship program for under-represented populations and investment in outreach programs that promote future generations of electricians and electrical technicians in Ontario. Reported Earnings • May 19
First quarter 2021 earnings released: CA$0.01 loss per share (vs CA$0.05 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: CA$56.0m (up 4.7% from 1Q 2020). Net loss: CA$711.0k (loss narrowed 58% from 1Q 2020). Price Target Changed • May 09
Price target increased to CA$2.75 Up from CA$2.42, the current price target is an average from 2 analysts. New target price is 72% above last closing price of CA$1.60. Stock is up 34% over the past year. Reported Earnings • Apr 02
Full year 2020 earnings released: CA$0.03 loss per share (vs CA$0.025 profit in FY 2019) The company reported a soft full year result with weaker earnings and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: CA$228.2m (up 21% from FY 2019). Net loss: CA$1.68m (down 243% from profit in FY 2019). Price Target Changed • Mar 17
Price target decreased to CA$2.42 Down from CA$3.00, the current price target is an average from 3 analysts. New target price is 42% above last closing price of CA$1.70. Stock is up 13% over the past year. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CA$1.76, the stock is trading at a trailing P/E ratio of 33.8x, down from the previous P/E ratio of 39.9x. This compares to an average P/E of 24x in the Renewable Energy industry in Canada. Total return to shareholders over the past year is a loss of 4.9%. Price Target Changed • Feb 02
Price target raised to CA$2.83 Up from CA$2.42, the current price target is an average from 3 analysts. The new target price is 17% above the current share price of CA$2.42. As of last close, the stock is up 61% over the past year. Price Target Changed • Jan 29
Price target raised to CA$2.58 Up from CA$2.33, the current price target is an average from 3 analysts. The new target price is close to the current share price of CA$2.65. As of last close, the stock is up 66% over the past year. Is New 90 Day High Low • Jan 26
New 90-day high: CA$2.15 The company is up 50% from its price of CA$1.43 on 27 October 2020. The Canadian market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Renewable Energy industry, which is up 28% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$16.18 per share. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improved over the past week After last week's 16% share price gain to CA$2.14, the stock is trading at a trailing P/E ratio of 41.1x, up from the previous P/E ratio of 35.3x. This compares to an average P/E of 19x in the Renewable Energy industry in Canada. Total returns to shareholders over the past year are 45%. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improved over the past week After last week's 20% share price gain to CA$1.74, the stock is trading at a trailing P/E ratio of 33.4x, up from the previous P/E ratio of 27.8x. This compares to an average P/E of 19x in the Renewable Energy industry in Canada. Total returns to shareholders over the past year are 39%. Is New 90 Day High Low • Jan 07
New 90-day high: CA$1.74 The company is up 14% from its price of CA$1.53 on 09 October 2020. The Canadian market is up 12% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Renewable Energy industry, which is up 28% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$15.45 per share. Announcement • Jan 07
Spark Power Group Inc. Announces Management Appointments Spark Power Group Inc. announced that Richard Jackson has been appointed as the company’s new President, effective immediately. Jason Sparaga will take on a new role, becoming the company’s Executive Board Chair, in which he will continue working closely with co-founder & Chief Investment Officer, Eric Waxman, focused on the company’s M&A activities, corporate finance work and supporting the Special Committee of the Board on the company’s previously announced Strategic Review. Andrew Clark will become the company’s Vice Board Chair, with a particular focus on Corporate Sustainability. Announcement • Jan 06
Spark Power Group Inc. Announces Executive Changes Spark Power Group Inc. announced that Richard Jackson has been appointed as the company's new CEO, effective immediately. Current co-CEO's Jason Sparaga and Andrew Clark will step back from their roles in the day-to-day operations of the Company, however both will continue as board members and major shareholders. Jason Sparaga will take on a new role, becoming the Company's Executive Board Chair, in which he will continue working closely with co-founder & Chief Investment Officer, Eric Waxman, focused on the Company's M&A activities, corporate finance work and supporting the Special Committee of the Board on the Company's previously announced Strategic Review. Announcement • Dec 15
Spark Power Group Inc Announces Executive Changes Spark Power Group Inc. announced changes to the management for its U.S. Operations intended to evolve the U.S. team from its "start-up" model to a more appropriate "operational run" model. To lead this transition, Cody Zaitsoff has taken on overall responsibility for Spark Power's U.S. Technical Services Operations, in addition to his current role as Spark's Executive Vice President for Western Canada. Tim Adams will take on the role of Spark Power's Director of Operations for the U.S. Analyst Estimate Surprise Post Earnings • Nov 13
Revenue beats expectations Revenue exceeded analyst estimates by 6.8%. Over the next year, revenue is forecast to grow 11%, compared to a 23% growth forecast for the Renewable Energy industry in Canada. Reported Earnings • Nov 13
Third quarter 2020 earnings released: EPS CA$0.04 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: CA$61.4m (up 18% from 3Q 2019). Net income: CA$2.07m (down 21% from 3Q 2019). Profit margin: 3.4% (down from 5.0% in 3Q 2019). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Nov 09
Market bids up stock over the past week After last week's 17% share price gain to CA$1.47, the stock is trading at a trailing P/E ratio of 15.4x, up from the previous P/E ratio of 13.2x. This compares to an average P/E of 14x in the Renewable Energy industry in Canada. Total returns to shareholders over the past year are 20%. Valuation Update With 7 Day Price Move • Oct 30
Market pulls back on stock over the past week After last week's 15% share price decline to CA$1.30, the stock is trading at a trailing P/E ratio of 13.6x, down from the previous P/E ratio of 16x. This compares to an average P/E of 19x in the Renewable Energy industry in Canada. Total returns to shareholders over the past year are 30%. Is New 90 Day High Low • Oct 29
New 90-day low: CA$1.39 The company is down 4.0% from its price of CA$1.45 on 31 July 2020. The Canadian market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Renewable Energy industry, which is up 21% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$9.16 per share. Announcement • Aug 08
Spark Power Group Inc. to Report Q2, 2020 Results on Aug 12, 2020 Spark Power Group Inc. announced that they will report Q2, 2020 results at 5:00 PM, Eastern Standard Time on Aug 12, 2020