Solar Alliance is pleased to announce it has installed the Company's first solar system as part of the recently completed acquisition of a Los Angeles solar sales team and project pipeline. Additionally, the integration of the sales team and the project pipeline are moving forward according to plan and will result in a positive revenue increase. Concurrently, the Company is assessing other acquisition opportunities in several different markets. Solar Alliance is confident its marketing and outsourced installation models are ideally built to facilitate rapid expansion through organic growth and the acquisition of distressed assets.
"The acquisition of the Los Angeles-based sales team is a transformative transaction for our company as we have tripled the size of our team in a short period of time," said Chairman and CEO Jason Bak. "The Los Angeles team is now fully trained on Solar Alliance systems and processes and has begun selling residential systems. Our next step will be expanding both San Diego and Los Angeles sales teams to ensure we take full advantage of these attractive markets."
The Company acquired 156 residential solar projects, or approximately 780 kilowatts, as part of the acquisition which are all in the installation process. The Company estimates it will generate approximately US $2,800,000 in gross revenue and up to US $1,585,000 in accretive gross profit from the acquired pipeline when the projects are installed in the next 60-90 days. This revenue is in addition to the Company's ongoing sales operations in Southern California.
"We are working diligently to move these solar projects through the installation phase in order to generate cash flow as soon as possible," said CFO Eric Knutzen. "Our model of utilizing installation partners instead of carrying excess costs and overhead will result in faster installation times and high gross margins for these projects. We believe this acquisition will pay for itself in the short term while generating significant sales revenue in the long term."
The next stage in the Company's expansion strategy involves aggressively recruiting additional sales staff for our San Diego and Los Angeles operations and assessing other acquisition opportunities in several different markets. Our objective is to facilitate rapid expansion through organic growth and the acquisition of distressed assets while generating a positive net income in 2017.
Source: Solar Alliance Energy Inc.
Date: May 2, 2017