1,508% increase in revenues from IPP production supporting the Company's strategy of generating long-term recurring revenues
253% increase in assets fueled by growth of IPP portfolio
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated June 5, 2025 to its short form base shelf prospectus dated May 7, 2025.
TORONTO, Oct. 2, 2025 /PRNewswire/ - PowerBank Corporation (NASDAQ: SUUN; Cboe CA: SUNN, FSE: 103) ("PowerBank" or the "Company), reports results for the fiscal year ended June 30, 2025. All financial figures are in Canadian dollars and in accordance with IFRS Accounting Standards as issued by the IASB as presented in the consolidated financial statements.
Fiscal Year Highlights (All Amounts are for the Twelve Month Period ended June 30, 2025 ("FY 2025") compared to the Twelve Month Period ended June 30, 2024 ("FY 2024"))
-- Revenues decreased by 29% to $41.5 million in FY 2025 as compared to
$58.4 million in FY 2024.
-- IPP revenues increased by 1,508% to $9.3 million in FY 2025 as
compared to $0.6 million in FY 2024.
-- Gross margin improved to 25.0% in FY 2025 as compared to 20.0% in FY
2024.
-- Despite the decrease in revenues, gross profit only decreased by 10.0% to
$10.5 million in FY 2025 as compared to $11.7 million in FY 2024.
-- Adjusted EBITDA(1) of ($0.68) million in FY 2025 compared to $0.82
million for FY 2024.
-- Net loss of $31.1 million in FY 2025, or $0.97 per basic share, compared
to net loss of $3.6 million in FY 2024, or $0.13 per basic share. The net
loss includes major items below:
-- Professional and consulting fees were $13.1 million, primarily
reflecting higher costs associated with business expansion
activities undertaken following the acquisition of Solar
Flow-Through Funds Ltd. ("SFF") in FY2025; and
-- Impairment loss of $30.4 million, which is non-recurring.
Dr. Richard Lu, President and CEO of PowerBank commented: "Throughout the fiscal year, I have highlighted that this was a year of transition for PowerBank. PowerBank's strategic focus is growing its independent power producer asset base, creating long term revenues for years to come. This means more projects retained and a longer cycle as PowerBank works to finance these assets to retain ownership. PowerBank began the year by acquiring Solar Flow-Through Funds Ltd. and its 29 MW of operating assets. PowerBank finished the year continuing to work with CIM on the previously announced transaction pursuant to which CIM transaction will provide up to US$100 million in non-dilutive equity capital for projects that will transform PowerBank's independent power producer asset base."
Dr. Lu continued: "The One Big Beautiful Bill Act has also created an opportunity for PowerBank to accelerate its development pipeline based on the new deadlines. The Company has prioritized development pathways in key U.S. states where site control, interconnection progress, and permitting are sufficiently advanced to qualify for full ITC treatment under the new rules. In parallel, PowerBank's diversified footprint across Canada offers resilience against U.S. policy risk. The Company is currently deploying battery storage systems in Ontario under the Independent Electricity System Operator's (IESO) Long-Term RFP framework, which is designed to secure clean, dispatchable capacity through decade-long contracts. PowerBank is also a leader in Nova Scotia's Community Solar program, where it holds significant market share and is actively expanding."
(1) EBITDA and Adjusted EBITDA are non-IFRS financial measures with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of Non-IFRS financial measures to the most directly comparable IFRS measures see "Non-IFRS Financial Measures" in this News Release.
Summary of Annual Results (All Amounts are for the Twelve Month Period and in thousands of Canadian dollars)
Year Ended June 30, 2025 June 30, 2024 ------------------------------------------------ ------------- ------------- Statement of Income and Comprehensive Income ------------------------------------------------ ------------- ------------- Total Revenue $ 41,531 $ 58,377 ------------------------------------------------ ------------- ------------- Net cash flows from (used in) operating activities $ (17,260) $ 8,485 ------------------------------------------------ ------------- ------------- Adjusted EBITDA (a non-IFRS measure) $ (683) $816 ------------------------------------------------ ------------- ------------- Net (loss) income $ (31,116) $ (3,577) ------------------------------------------------ ------------- ------------- Basic (loss) earnings per share $ (0.97) $ (0.13) ------------------------------------------------ ------------- ------------- Diluted (loss) earnings per share $ (0.97) $ (0.13) ------------------------------------------------ ------------- -------------
The Company ended the 2025 fiscal year with $41.3 million in current assets (including $14.9 million in cash, restricted cash and short term investments), as compared to $17.6 million in current assets as of year-end June 30, 2024.
Current liabilities increased from $13.4 million as of the year ended June 30, 2024, to $43.1 million as of June 30, 2025.
For complete details please refer to the audited consolidated financial statements and associated Management Discussion and Analysis ("MD&A") for the year ended June 30, 2025, available on SEDAR+ (www.sedarplus.ca).
Corporate Updates
During FY 2025 and subsequent to year-end, the Company highlights the following:
-- The Company closed its acquisition of SFF. This transaction values SFF at
up to $45M but the consideration payable excludes the common shares of
SFF currently held by the Company.
-- CIM Group ("CIM"), a real estate and infrastructure owner, operator,
lender and developer, and the Company have entered into a Mandate Letter
providing for up to US$100 million in project based financing for a
portfolio of up to 97 MW of solar power projects located in the United
States (the "CIM Transaction").
-- Continued execution on the Company's development pipeline of solar PV
projects that totals approximately 942 MW and BESS projects that totals
approximately 864 MWh. The Company categorizes its development pipeline
into the following three categories: (1) "Under Construction" means the
commercial operation date for the project is expected to occur within the
next six to twelve months; (2) "Advanced Development" means the project
is expected to reach NTP stage within the next six to twelve months; and
(3) "Development" means the project is expected to reach NTP stage in
greater than twelve months. The existing operational assets and
development pipeline is broken down as follows:
BESS
(MWdc, MWh) Total (MWh) PV (MW)
--------------------- ----- ------ -------
Operational 35 - 35
Under Construction 59 20 39
Advanced Development 128 44 84
Development 1,584 800 784
--------------------- ----- ------ -------
Total 1,806 864 942
--------------------- ----- ------ -------
-- The Company entered into agreement with Qcells, through an affiliate, to
sell four ground-mount solar power projects that are under development in
upstate New York representing 25.58 MW. The projects will be developed as
four separate solar power projects. The Company will now continue to
build the Projects for Qcells to commercial operation via EPC agreements.
The sale of the projects and EPC agreement have a total value of
approximately US$49.5 million. The Company also expects that it will
retain an operations and maintenance contract for the projects following
the completion of construction. Two of the four projects have commenced
construction (Hardie and Rice Rd) and two of the four projects remain in
the permitting stage (Gainesville and Hwy 28). As it relates to
Gainesville, a decision of the town to deny a variance application is
being challenged in the Super Court, State of New York. Refer to the MD&A
for additional details.
-- The Company announced its strategic expansion into the rapidly growing
data market. The Company does not presently have any contracts to develop
or power a data center but it is in discussions with various other
parties regarding potential data center opportunities and will provide
details if an agreement to acquire or develop a data center is concluded.
-- The Company announced that its 3.26 MW Camillus Solar Project has been
sold to, and will now be constructed for, Solar Advocate Development LLC
("Solar Advocate") in a transaction valued at US$7.3 million. Engineering
and initial construction have commenced and the Company has initiated
procurement of major equipment. The Company will now continue to build
the project for Solar Advocate to commercial operation via an EPC
agreement dated March 18, 2025. The sale price for the project, and value
of the EPC agreement are approximately US$7.3 million.
-- The Company closed a registered direct offering with a single
institutional investor. The investor purchased 2,394,367 common shares
and warrants to purchase up to 2,394,367 common shares at a combined
purchase price of US$3.55 per common share and accompanying warrant for
aggregate gross proceeds of approximately US$8.5 million before deducting
fees and other estimated offering expenses (the "2025 Offering"). The
warrants are exercisable immediately at an exercise price of US$4.45 per
share and will expire five years from the date of issuance. Approximately
US$8.5 million was funded in full upon the closing of the 2025 Offering,
and up to an additional US$10.65 million may be funded upon full cash
exercise of the warrants. No assurance can be given that any of the
warrants will be exercised.
-- The Company announced that Sydney, Brooklyn, and Petpeswick Community
Solar projects in Nova Scotia were granted $1.74 million in funding
through the Nova Scotia Department of Environment and Climate Changes
provided by the Nova Scotia Department of Energy and managed by the Net
Zero Atlantic program. These projects are owned by a third party and are
being developed by the Company for the third party.
-- Continued development of BESS projects located in Ontario, two of which
are backed by a backed by a $25.8 million Royal Bank of Canada Project
Finance facility:
-- SFF-06 Project: The project known as SFF-06 is under construction
and on August 6, 2025 the Company announced the installation of
its 4.99 MW BESS at the project. This project is expected to start
commissioning and reach permission to operate before the end of
the calendar year.
-- 903 Project: As previously disclosed, the 903 project remains in
the permitting phase, and construction cannot commence until all
final permits have been secured. Specifically, the project
requires an Official Plan Amendment and a Zoning By-law Amendment
("OPA/ZBA") from the Township of Armour, Ontario. On November 8,
2022, 1000234763 Ontario Inc. ("ProjectCo") received a Municipal
Support Resolution from the Township of Armour, which was
unanimously approved by council. However, approval of the OPA/ZBA
has been delayed due to public opposition and council's ongoing
evaluation of how to address that opposition. These delays mean
ProjectCo may not be able to begin construction in line with the
original schedule, which in turn impacts the ability to achieve
commercial operation by April 2026. To preserve its rights under
the E-LT1 contract, ProjectCo has submitted a notice of potential
force majeure to the IESO related to the OPA/ZBA delay. This
request is still under consideration, and the potential impact on
the project schedule remains uncertain. As of September 19, 2025,
the Township of Armour confirmed that it will proceed with
scheduling the statutory public meeting for the OPA/ZBA submission,
with a decision expected by Q2 FY 2026. Following OPA/ZBA approval,
ProjectCo will still need to obtain Site Plan Approval ("SPA"),
Planning Act consent, and a building permit before construction
can begin.
-- OZ-1 Project: On February 26, 2025, the Company submitted an
application to the Municipality of Arran-Elderslie for SPA related
to the proposed BESS project, along with an application for
consent to establish a long-term lease on the lands where the OZ-1
Project is located (the "OZ-1 Consent"). The consent application
was made under Section 50(3) of the Planning Act (Ontario) to
permit a lease exceeding 21 years. The SPA is still under review
by the Municipality, and both the timing and outcome of the
approval remain uncertain at this stage. On July 29, 2025, the
County of Bruce provisionally approved Consent Application
B-2024-075, subject to seven (7) conditions. Certain conditions
were overly broad, lacked clarity, and were considered
unreasonable. As a result, the Company appealed the decision to
the Ontario Land Tribunal ("OLT") on August 19, 2025. The County
has since expressed interest in resolving the matter internally
without proceeding to the OLT and has 75 days from the date of
appeal to do so. Discussions are ongoing between the Company's and
the County's counsels with the goal of either narrowing the
conditions or obtaining municipal confirmation that the conditions
have been satisfied. If the parties cannot resolve the matter
within this timeframe, the appeal will proceed to the OLT. At this
stage, the likelihood of resolution within the allotted time, or
of success at the OLT, cannot be reasonably predicted. Delays in
resolving the OZ-1 Consent mean that construction may not begin as
originally planned, which in turn jeopardizes achieving commercial
operation by April 2026. To preserve its rights under the E-LT1
contract, the Company has submitted a notice of potential force
majeure to the IESO related to these delays. The timing of permit
issuance and the impact on the project schedule remain uncertain.
-- BESS Supplier: As a result of these permitting delays, the Company
and its battery storage systems supplier (the "Supplier") are in
discussions to terminate the contracts for OZ-1 on mutually
agreeable terms. Once permitting certainty is achieved for OZ-1,
the Company will either re-enter into agreements with the Supplier
or pursue an alternative supplier. Under the proposed termination
arrangement, the parties agree to terminate the OZ-1 equipment
supply and long-term service agreements, with PowerBank
relinquishing all rights and obligations. The Supplier will retain
possession and property of the systems originally allocated to
OZ-1, and PowerBank will pay the Supplier a termination fee of
$475,000 along with a reimbursement of certain retrofit costs in
the amount of $100,000, in addition to any amounts due for
services performed to date. Final completion deadlines for those
projects are also being adjusted, and the termination arrangement
remains subject to lender consent and execution of definitive
agreements.
The Company notes that the execution of the Company's growth strategy depends upon the continued availability of third-party financing arrangements for the Company and its customers and the Company's future success depends partly on its ability to expand the pipeline of its energy business in several key markets. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power, which could cause demand for the Company's services to decline. Further the forecasted MW capacity of a solar project or BESS may not be reached. Qcells will pay the purchase price for the projects sold to Qcells, and construction costs under the EPC agreements, in stages. If Qcells does not obtain the necessary financing the Company is obligated to reacquire the projects subject to retention of an initial payment. The Company is also obligated to acquire any projects that do not commence construction by a certain deadline.
The CIM Transaction is subject to the execution of definitive documentation setting out all of the representations, warranties, covenants and conditions precedent associated with the CIM Transaction. There is a risk that definitive documentation may not be executed or that the conditions precedent to the CIM Transaction are not satisfied. In such case, no funding will be advanced under the terms of the CIM Transaction. PowerBank will also need to secure the financing required to develop the projects to mechanical completion and substantial completion, as prior to such milestone none of the funding from the CIM Transaction will be available.
The development of any data center project is subject to identification of a suitable project site, receipt of required permits, entry into contracts for construction and the use of the data center, the availability of third-party financing arrangements for the Company and the risks associated with the construction of a data center. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for renewable energy, which could result in future projects no longer being economic.
Please refer to "Forward-Looking Statements" for additional discussion of the assumptions and risk factors associated with the statements in this press release.
Conference Call October 2, 2025, at 4:30 PM ET
The Company will review financial results and provide a business update. Interested parties can register for the webinar using the information below:
https://events.teams.microsoft.com/event/5d39d710-ab89-42c3-94f1-5a417432ea1a@f90ea049-87a1-4082-95af-7e4e24c02cb4
Non-IFRS Financial Measures
The Company has disclosed certain non-IFRS financial measures and ratios in this press, as discussed below. These non-IFRS financial measures and non-IFRS ratios are widely reported in the renewable energy industry as benchmarks for performance and are used by management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company's performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company's performance prepared in accordance with IFRS.
Non-IFRS financial measures are defined in National Instrument 52-112 -- Non-GAAP and Other Financial Measures Disclosure ("NI 52-112") as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ration, fraction, percentage or similar representation.
A non-IFRS ratio is defined by NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage, or similar representation, (b) has a non-IFRS financial measure as one or more of its components, and (c) is not disclosed in the financial statements.
Adjusted EBITDA
Adjusted EBITDA is a non-IFRS financial measure, which excludes the following from net earnings:
-- Income tax expense; -- Finance costs; -- Amortization and depreciation; -- Fair value gain/loss; -- Unrealized foreign exchange gain/loss; -- Non-recurring income/expense; -- Loss on investments.
Management believes Adjusted EBITDA is a valuable indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures. Management uses Adjusted EBITDA for this purpose. EBITDA is also frequently used by investors and analysts for valuation purposes whereby Adjusted EBITDA is multiplied by a factor or "EBITDA multiple" based on an observed or inferred relationship between Adjusted EBITDA and market values to determine the approximate total enterprise value of a Company. Management also believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results because it is consistent with the indicators management uses internally to measure the Company's performance and is an indicator of the performance of the Company's renewable energy project development and operations.
Adjusted EBITDA is intended to provide additional information to investors and analysts. It does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of operating performance prepared in accordance with IFRS. Adjusted EBITDA excludes the impact of non-cash costs of financing activities, income taxes, depreciation of property, plant and equipment, amortization of intangible asset, fair value gain on derivative contracts, unrealized foreign exchange, impairment loss and other non-recurring activities. Other companies may calculate Adjusted EBITDA differently.
Twelve months ended June 30,
---------------------------------------
(in thousands of Canadian dollars) 2025 2024
--------------------------------------- --------------- ------------
Net income (loss) per financial
statements $ (31,116) $ (3,577)
Add (Deduct):
Depreciation and amortization
expense 100 79
Depreciation and amortization
included in cost of goods sold 5,018 331
Interest income (607) (321)
Interest expense 3,263 285
Non-recurring expenses 2,883 724
Current tax recovery 953 2,962
Income tax (refund) expense (5,173) (16)
Fair value change of derivatives 1,340 137
Fair value change of warrant
liabilities (3,575) -
Fair value change of contingent value
right (7,195) -
Loss on investments 3,385 1,125
Impairment loss 30,374 4,100
Other (income) expenses (333) (5,013)
--------------------------------------- --------------- ------------
Adjusted EBITDA $ (683) $ 816
--------------------------------------- --------------- ------------
About PowerBank Corporation
PowerBank Corporation is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the USA. The Company develops solar and Battery Energy Storage System (BESS) projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. The Company maximizes returns via a diverse portfolio of projects across multiple leading North America markets including projects with utilities, host off-takers, community solar, and virtual net metering projects. The Company has a potential development pipeline of over one gigawatt and has developed renewable and clean energy projects with a combined capacity of over 100 megawatts built. To learn more about PowerBank, please visit www.powerbankcorp.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to the Company's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. In particular and without limitation, this news release contains forward-looking statements pertaining to the Company's expectations regarding its industry trends and overall market growth; the Company's growth strategies the expected energy production from the solar power projects and BESS mentioned in this press release; the number of homes expected to be powered; the timeline for construction; the expected savings for local residents; the expected value of the transactions with Qcells; Qcells receipt of financing to continue to construct the Projects; the receipt of incentives for projects; the details of the CIM Transaction and the size of the Company's development pipeline. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.
Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward looking statements included in this news release, the Company has made various material assumptions, including but not limited to: obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; Qcells obtaining financing to complete the construction of the Project; general business and economic conditions; the Company and CIM failing to execute definitive agreements for the CIM Transaction; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and services offered by the Company's competitors; that the Company's current good relationships with its service providers and other third parties will be maintained; and government subsidies and funding for renewable energy will continue as currently contemplated. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements.
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