EEW Renewables Unveils $300M Valuation and Growth Plans in Europe and Australia

• EEW Renewables Ltd (“EEW” or the “Company”) is a global utility-scale renewable energy project developer across Europe and Australia with expertise across Solar PV, Battery Energy Storage System (“BESS”), and Green Hydrogen.
• Europe and Australia remain strong markets for renewable projects given the relatively low cost of installation, ease of grid connectivity, and attractive electricity rates.
• EEW has an established 12-year track record developing ~1.5 GW of renewable energy projects with compelling growth supported by a 9 GW project pipeline.
• EEW has a unique opportunity to evolve from a pure play developer into an independent power producer (“IPP”), attracting recurring revenue and attractive return on invested capital with the long-term goal of achieving IPP multiples in the public markets.
• The proposed transaction values EEW at a pre-money enterprise value of $300 million (pro forma enterprise value of $386 million, assuming $25 million total left from trust proceeds and transaction financing at $10.00 per share).

A Leader in Renewable Energy

NEW YORK, Sept. 06, 2024 (GLOBE NEWSWIRE) — EEW Renewables Ltd, a global developer in the renewable energy industry, and Compass Digital Acquisition Corp. (Nasdaq: CDAQ) (“CDAQ”), a special purpose acquisition company, have entered into a definitive business combination agreement (the “Business Combination Agreement”).

EEW is a global utility-scale renewable energy project developer with diversified operations across Europe and Australia. Since its founding in 2012, EEW has leveraged over a decade of experience to successfully develop approximately 1.5 GW of renewable energy projects. The Company operates a streamlined platform with specialized expertise in key renewable technologies, including solar PV, BESS, and green hydrogen development.

EEW boasts a robust project pipeline totalling 9 GW, providing around 8x coverage of its 2024 sales forecast. The advanced-stage pipeline includes more than 300MW of Solar PV and over 1.5 GWh of BESS, positioning EEW to capitalize on the expanding global demand for renewable energy. The Company is strategically poised to benefit from large, growing addressable markets, driven by global climate initiatives, declining renewable energy costs, and rising energy demand.

As a pure-play developer, EEW has a natural advantage and a strategic vision to evolve into an IPP, enabling it to manage and operate select projects and capture recurring revenue. Upon closing of the transactions contemplated in the Business Combination Agreement (the “Proposed Business Combination”), the combined company is expected to list on Nasdaq, which could accelerate EEW’s growth trajectory, unlocking a multitude of new opportunities.

EEW’s existing management team, led by CEO Svante Kumlin, will continue to lead the business after this transaction.

Svante Kumlin

“Today’s business combination represents a significant milestone for EEW and enables us to continue to grow the business and capitalize on our significant existing project pipeline. Our team has demonstrated a strong track record of originating and developing utility-scale renewable energy projects globally and is committed to generating clean and renewable energy. This combination with CDAQ provides us with a partner that shares our vision for the future and secures our ability to continue executing our business plan. We are excited to collaborate with the CDAQ team and believe we are well-positioned to unlock new opportunities and significant value for our shareholders.”

Proposed Business Combination Overview

The Proposed Business Combination implies a pro forma combined enterprise value of $386 million, assuming $25 million total left from trust proceeds and transaction financing at $10.00 per share, excluding additional earnout consideration. The Proposed Business Combination is expected to deliver gross cash proceeds to EEW of approximately $25 million, through a combination of SPAC Trust proceeds and additional funding from one or more financing agreements with investors expected to be executed prior to the closing of the Proposed Business Combination.

Under the terms of the Business Combination Agreement, EEW’s existing shareholders will convert 100% of their equity ownership into the combined company and are expected to own approximately 79% of the post-combination company upon consummation of the Proposed Business Combination, inclusive of the additional earnout consideration and any third-party financing arrangements.

The Proposed Business Combination is expected to be completed in the first quarter of 2025, subject to customary closing conditions, including regulatory and CDAQ stockholder approvals. The combined public company is expected to list its common stock and warrants to purchase common stock on Nasdaq, subject to approval of its listing application. The Proposed Business Combination has been unanimously approved by the Board of Directors of both EEW and CDAQ.

Additional information about the Proposed Business Combination, including a copy of the Business Combination Agreement, will be provided in a Current Report on Form 8-K to be filed by CDAQ with the U.S. Securities and Exchange Commission (the “SEC”) and available at www.sec.gov.

No Offer or Solicitation

This press release is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Proposed Business Combination and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of CDAQ, Pubco or EEW, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or exemptions therefrom.