Eastland Group Limited, the New Zealand energy company that made a $1.6 million cash advance to Innovations Development Group mentioned here last week, has elected to convert its loan into an ownership stake in an IDG partnership currently competing for a contract to provide 50 megawatts of geothermal power to Hawaiian Electric Industries’ Big Island subsidiary.
The cash-for-equity swap was noted in a letter received yesterday from Eastland’s CEO, Matt Todd.
Regarding the secured loan from Eastland Group to IDG alluded to in your blog: you are probably not aware that we have formalized our partnership with IDG and that the secured loan has been converted into equity in our geothermal partnership with IDG in Hawaii.
Todd touts the significant role of geothermal in New Zealand’s energy landscape, and expresses confidence in his company’s working relationship with IDG.
Todd also says the company was fully informed of IDG founder Roberta Cabral’s prior convictions on tax and wire fraud charges.
“They do not in any way diminish our confidence in her or in the IDG team,” Todd wrote.
We are in Hawaii working alongside IDG because we believe in geothermal energy, we have skills and capabilities we want to share and because we believe in IDG’s native to native model and their vision for a better more sustainable Hawaii.
The letter, which is unsigned and is not on Eastland’s letterhead, was send from Todd’s corporate email account.