Solar Alliance signs letter of intent to acquire solar assets
Solar Alliance Energy, Inc. announced Tuesday that the company signed a letter of intent (LOI) to acquire certain assets from an unnamed U.S. solar company.
In accordance with the LOI, Solar Alliance will acquire a team of employees from the seller as well as a number of residential solar projects that are currently in progress. In 2016, the team that the company will acquire sold over seven megawatts (MW) of residential solar systems and generated $34,305,000 in revenue.
“This proposed acquisition aligns perfectly with our expansion plans in the U.S. solar market,” Solar Alliance Chair and CEO Jason Bak said. “Our San Diego operation has shown strong progress over the last few months and adding this sales and marketing team will accelerate our growth. Combined with the
project pipeline that is being acquired, this transaction will immediately drive significant value for Solar Alliance shareholders.”
Solar Alliance will pay up to $2 million in contingent payments subject to a predetermined payment waterfall.
The Solar Alliance expects to sign a transaction agreement by April 14 and said it will release further details once the agreement is reached. The proposed agreement, however, is still subject the satisfaction of certain conditions and TSX Venture Exchange approval.
