Four of the five shareholders have converted debt owed into additional equity in Elexicon, the electricity distribution company serving nearly 200,000 customers in communities in Durham Region and beyond.
The new equity structure was not announced.
The four shareholders – Whitby, Clarington, Belleville and Ajax – have agreed through a memorandum of understanding to invest more than $62 million of additional equity in the company.
The fifth shareholder is Pickering (see table below).
“By converting the debt owed to shareholders into equity in the company, we’re committing to Elexicon’s long-term growth,” said Clarington Mayor Adrian Foster.
“Elexicon provides safe and reliable energy to many areas of Clarington, and as our community grows, so too must our local energy infrastructure. This is your utility, owned by the taxpayers, and we’re confident this prudent investment will contribute to the long-term financial success of both the company and our local economy,” he added.
“The equity investment enables us to increase the capacity and capabilities of our grid in order to keep pace with growth and better serve customers in all of our communities,” said Amanda Klein, Elexicon’s Chief Executive Officer.
