Solar Alliance Energy Inc. is pleased to announce it has signed a Letter of Intent ("LOI") with Thompson Machinery Commerce Corporation ("Thompson Machinery") to acquire Aries Solar, LLC ("Aries"), an established Tennessee commercial solar company that is licensed to operate in four Southeast U.S. states. Pursuant to the LOI, Solar Alliance will acquire all of the assets of Aries, including a pipeline of commercial projects with a potential revenue of ~US $18,000,000 (unaudited). 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 U.S. and the Southeast U.S. The Company anticipates this acquisition will materially increase revenues and net income at Solar Alliance.
"This acquisition accelerates our expansion plans in the commercial solar sector and brings us significant revenue potential, commercial project expertise and geographic diversification," said Chairman and CEO Jason Bak. "We see significant market potential in commercial solar and this acquisition will allow us to take advantage of this growing sector. The team at Aries will be a welcome addition to Solar Alliance and will add technical and sales expertise that will drive commercial business across our entire organization."
Aries is an established turn-key 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 their professionals have installed 5 megawatts of solar, including several high-profile installations:
Under the terms of the LOI, the purchase price for 100% of Aries Solar, LLC is a contingent payment of US $1,000,000. Solar Alliance will allocate 20% 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.
The LOI to acquire Aries follows the recent announcement of a Joint Development Agreement ("JDA") with Thompson Machinery, one of the premier Caterpillar dealers in the United States. Founded in Nashville in 1944, Thompson Machinery is the exclusive Caterpillar dealer for Middle Tennessee, West Tennessee, and North Mississippi. The Thompson family is also a minority owner of the Nashville Predators NHL hockey team. In connection with the JDA, Thompson Machinery also invested $265,000 in Solar Alliance's previously announced private placement.
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.
Source: Solar Alliance Energy Inc.
Date: Jul 10, 2017