Hut 8 To Sell 310 MW Power Portfolio To TransAlta

(RTTNews) - Hut 8 Corp. (HUT), an energy and digital infrastructure provider, Monday announced that it has entered into a definitive share purchase agreement to sell 310-megawatt portfolio of four natural gas-fired power plants in Ontario to TransAlta Corp. (TAC), a Canadian power generator.

The financial details of the deal have not been disclosed.

The 310-megawatt portfolio of four natural gas-fired power plants are owned and operated by Far North Power Corp., an entity of Hut 8 and Macquarie Equipment Finance Ltd., a subsidiary of Macquarie Group Limited.

The transaction culminates a multi-phase program which strengthened the company's portfolio following its acquisition out of bankruptcy.

"Our power-native team executed a disciplined program to strengthen the four natural-gas power plants comprising the Portfolio, enhancing their operational and commercial footing. This work enabled the award of investment-grade, long-term capacity contracts across all four sites through the MT2 process. With that foundation in place, we created the appropriate conditions to crystallize the value of the Portfolio for our shareholders.", commented Asher Genoot, CEO of Hut 8.

The company also continues to advance a multi-gigawatt pipeline of power-first digital infrastructure development opportunities across North America with an intention to prioritize capital allocation toward large-scale digital infrastructure development opportunities.

CIBC Capital Markets served as the financial advisor to the company with Bennett Jones LLP acting as its legal counsel.

In pre-market activity, HUT shares were trading at $37.11, up 0.46% on the Nasdaq and TAC shares were trading at $15.32, up 3.02% on the New York Stock Exchange.