Mr. Jason Bak reports
SOLAR ALLIANCE PROVIDES ADDITIONAL INFORMATION ON TENNESSEE ACQUISITION LOI
Solar Alliance Energy Inc. is providing additional information regarding the potential revenue from the pipeline of projects associated with the letter of intent signed with Thompson Machinery Commerce Corp. to acquire Aries Solar LLC. Pursuant to the LOI, announced July 10, 2017, Solar Alliance will acquire all of the assets of Aries, including a pipeline of commercial projects. The Aries team consists of experienced commercial solar project developers and technical staff that will enhance Solar Alliance’s ability to increase commercial project deal flow across the company’s operations in California, the Northeast United States and the Southeast U.S.
There are 45 projects at various stages including prospecting, proposal and contract negotiations. The total potential revenue from all projects if built is approximately $18,838,000 (U.S.). The potential net profit that may be derived from the projects if built is approximately $3.79-million (U.S.). The company anticipates the projects in the pipeline will be financed through a variety of third party mechanisms that will provide financing for equipment and other costs of goods. Solar Alliance will be required to cover payroll costs associated with the new Aries team once the acquisition is complete, however, the company does not anticipate a material financing requirement to move the projects through the various development stages to installation. Under the terms of the LOI, the purchase price for 100 per cent of Aries Solar LLC is a contingent payment of $1-million (U.S.). Solar Alliance will allocate 20 per cent of net income from the current Aries project pipeline to Thompson Machinery until such time as the contingent payment is fulfilled. Commercial projects signed after the acquisition are not subject to the net income allocation described above. There is no guarantee that all of the projects in the pipeline will reach the installation stage.
Aries is an established turnkey commercial solar energy solution provider with industry experts that focus on engineering, procurement and construction needs. Aries is licensed to operate in four Southeast U.S. states and collectively its professionals have installed five megawatts of solar, including several high-profile installations.
Further details regarding the acquisition will be announced when a definitive transaction agreement is reached with the seller. Completion of the proposed transaction agreement remains subject to the satisfaction of a number of conditions precedent, including further due diligence and required TSX Venture Exchange approval.
Solar Alliance is a sales, marketing and development company focused on residential, commercial and industrial solar installations. Since the company was founded in 2003, it has developed wind and solar projects that provide enough electricity to power 150,000 homes.
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