CALGARY, Alberta, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Canadian Premium Sand Inc. ("CPS" or the "Company") (TSXV: CPS) is pleased to announce that it has successfully applied for and received a US$75 million tax credit allocation to re-purpose a former glass manufacturing site in southern US to produce pattern solar glass (the "US Project"). The Company is also pleased to announce an addition to its board of directors.
Tax Credit Allocation
To support the development of the US Project, after receiving a letter of encouragement from the US Department of Energy (the "DOE") in August of 2024, the Company submitted a detailed application to the DOE's 48C tax credit program in October of 2024. Following a review of the application by the DOE, the Company has received notice from the US Internal Revenue Service accepting the DOE's recommendation to grant US$75 million in tax credit allocation to the US Project.
The Company's submission to the DOE was one of over 800 projects submitted in 2024 and one of only 140 successful projects granted a 48C tax credit allocation. This tax credit allocation is transferable, providing the Company with the option to monetize it to support construction financing. Recipients of transferable tax credits have the flexibility to sell the tax credit for cash or enter into a tax-equity transaction with a third party to support project financing. The Company is in the process of evaluating these options as it advances the US Project to a final investment decision later this year.
Strategic Partner
The Company's wholly owned US subsidiary, CPS Glass USA Corp. is negotiating a joint venture (the "JV") agreement with a strategic partner to advance the US Project. The strategic partner brings glass manufacturing expertise, purchasing power and in-house engineering capability. Re-purposing a former manufacturing facility with a strategic partner will allow CPS to refine the capital cost and de-risk both the development of the project and operation of the facility.
US Project Continues to Advance
The Company continues to progress engineering and commercial contracting efforts for the US Project by:
- advancing pre-construction engineering and design for the US Project to finalize the capital cost estimate,
- initiating an update to the existing Environmental Protection Act permit to reflect the revised operational parameters, and
- advancing offtake discussions with its customer base, currently negotiating up to 60% of the US Project output under both binding contracts and memorandums of understanding.
Anshul Vishal, VP Corporate Development will continue to head commercial development of the US Project working towards a successful construction financing as the Company advances its broader vision of leveraging its low iron silica sand resource to become North America's largest vertically integrated supplier of pattern solar glass.
Brad Virbitsky Appointed to the Board of Directors
The Company has appointed Brad Virbitsky to its board of directors, effective January 24, 2025. Mr. Virbitsky is a portfolio manager and partner at Equinox Partners LP, which currently owns 14% of the Company's issued and outstanding common shares. Mr. Virbitsky has over a decade of experience in working with management teams and boards to help advise on long-term corporate and financial strategies. Mostly recently, Brad served as board member of Crew Energy Inc. where he participated in a process that ultimately resulted in its shareholders realizing a 70% premium through an all-stock corporate sale transaction. Mr. Virbitsky holds a Bachelor of Arts from Princeton University.
About Canadian Premium Sand Inc.
The Company is developing North American manufacturing capacity for ultra-high-clarity pattern solar glass through multiple facilities, utilizing high-purity low-iron silica sand from its wholly owned Wanipigow quarry leases. The Company's low-carbon facility to be located in Selkirk, Manitoba will utilize renewable Manitoba hydroelectricity and produce 6GW of low-carbon solar glass. The Company's planned jointly owned facility located in the U.S. will produce 4GW of domestic solar glass. With 10GW of annual proposed solar glass manufacturing capacity, the Company is well positioned to become the largest and preferred supplier in North America. The Company is a reporting issuer in Ontario, Alberta and British Columbia. Its shares trade on the TSXV under the symbol "CPS".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION:
Canadian Premium Sand Inc.
Glenn Leroux
President and Chief Executive Officer
glenn.leroux@cpsmail.com
Investor Relations
IR@cpsmail.com
587.355.3714
www.cpsglass.com
Cautionary Note and Forward-Looking Information
The structure of the JV to advance the US Project is subject to negotiation between the parties and receipt by the parties of tax, corporate, regulatory and securities law advice and will be agreed to pursuant to a definitive agreement in respect of the JV and the US Project. Accordingly, the JV is non-binding and does not constitute a definitive agreement, and no assurances can be given that the JV or the US Project will be completed as outlined or at all.
Certain statements contained in this press release constitute forward-looking statements relating to, without limitation, expectations, intentions, plans and beliefs, including information as to the future events, results of operations and the Company's future performance (both operational and financial) and business prospects. In certain cases, forward-looking statements can be identified by the use of words such as "expects", "estimates", "forecasts", "intends", "anticipates", "believes", "plans", "seeks", "projects" or variations of such words and phrases, or state that certain actions, events or results "may" or "will" be taken, occur or be achieved. Such forward-looking statements reflect the Company's beliefs, estimates and opinions regarding its future growth, results of operations, future performance (both operational and financial), and business prospects and opportunities at the time such statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or circumstances should change. Forward-looking statements are necessarily based upon a number of estimates and assumptions made by the Company that are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Forward-looking statements are not guarantees of future performance. In particular, this press release contains forward-looking statements pertaining, but not limited, to: the potential benefits of the tax credit, JV and US Project; the timing for a potential final investment decision in respect of the US Project; the ability to successful negotiate a definitive JV and advance the US Project including the ability to obtain construction financing; the benefits of having a strategic partner and a JV in respect of the US Project; the financing of the Selkirk Project and US facility; the anticipated market for the Company's patterned solar glass; future development plans; industry activity levels; industry conditions pertaining to the solar glass manufacturing industry; the ability of and manner by which the Company expects to meet its capital needs; and the Company's objectives, strategies and competitive strengths. By their nature, forward-looking statements involve numerous current assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from those anticipated by the Company and described in the forward-looking statements. There are no assurances that the business plans for the Company (including the JV or the US Project) described in this news release will come into effect on the terms or time frame described herein. The forward-looking information and statements contained in this document speak only as of the date hereof and the Company does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws
