Tech Firm Rides Winds of Change
By Leslie Brooks Suzukamo, Pioneer Press, St. Paul, Minn.
Oct. 17–Wind Energy America Inc. believes the wind is blowing in its favor.
The Eden Prairie-based company, formerly known as Dotronix Inc., said Tuesday that it has entered into a letter of intent to buy the assets of wind farm developer Boreal Energy Inc. of Vadnais Heights.
The company’s goal, said CEO Robert Knutson, is “to build a profitable and diversified portfolio of wind power assets.”
Like other wind energy developers, Wind Energy America is hoping to get a lift from a state mandate that requires Minnesota utilities to derive 25 percent of their power from renewable sources like wind by 2025.
Boreal Energy has a pipeline of projects in the works for the Great Plains, the Midwest and Canada. Those projects include about 60 megawatts worth of power in various stages of design or development and an additional 1,200 megawatts of energy projects in the planning stage, the company said in a statement. Each megawatt represents enough electricity to power 600 to 1,000 homes.
Wind Energy America intends to purchase substantially all of Boreal’s assets in a tax-free exchange for Wind Energy America’s stock. The terms provide for Wind Energy to exchange up to 30 million shares of its stock for Boreal’s assets, depending upon their value, to be determined through due diligence now underway, the company said.
In August, Wind Energy bought a share in two other Minnesota wind-energy farms for $2.3 million in cash, according to a document filed with the Securities and Exchange Commission.
Wind Energy America, founded in 1980 as Dotronix, designed, manufactured and marketed cathode ray tubes and digital signs for nearly 24 years. Losses caused the company to discontinue operations in 2005, the company said in a SEC document.
In 2006, it decided to enter the wind energy business as its primary line, and in March changed its name to Wind Energy America.
Shares of Wind Energy, which trade over-the-counter, closed Tuesday at $1.40, down 25 cents, or 15 percent.
Leslie Brooks Suzukamo can be reached at lsuzukamo@pioneerpress.com or 651-228-5475.
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