Solar Alliance Provides Update on Commercial Solar Acquisition


Solar - Sep 18, 2017

Solar Alliance Energy Inc. is pleased to provide an update on the Letter of Intent announced on July 10, 2017 with Thompson Machinery Commerce Corporation for the acquisition of Aries Solar, an established 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. Thompson Machinery has also invested $265,000 in the Company's private placement closed July 7, 2017.

The Company is pleased to report due diligence has almost been completed and the drafting of final agreements is underway. The Solar Alliance team has completed an extensive review of Aries' personnel, project pipeline, accounting procedures, business procedures and financial stability.


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During the due diligence period, Aries has successfully signed a contract for a 182 kW solar system in North Carolina. In partnership with Solar Site Design and Distributive Solar, Aries will install the 182 kW on the rooftop of Precision Part Systems in Winston-Salem, North Carolina. The project is targeted for installation this month and will be the largest rooftop solar project in the city of Winston-Salem. The project marks the first installation for Aries in North Carolina and will also be Aries first project in partnership with Solar Site Design and Distributive Solar.

"We have been impressed with the expertise and professionalism of the Aries team and we look forward to completing this acquisition," said Chairman and CEO Jason Bak. "This latest contract with Precision Parts illustrates Aries ability to build long term relationships with key businesses and industry partners in the Southeast. 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 in addition to commercial system sales in their region."

Aries has approximately 45 projects at various stages including prospecting, proposal, and contract negotiations. As announced on July 10, 2016 the total potential revenue from all projects if built is approximately US $18,838,000. The potential net profit that may be derived from the projects if built is approximately US $3,790,000. The Company anticipates the projects in the pipeline will be built over the upcoming year and will be financed through a variety of third party mechanisms that will provide funding for equipment and other costs of goods. The Company does not anticipate a material funding requirement to move the projects through the various development stages to installation.

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. There is no guarantee that all of the projects in the pipeline will reach the installation stage.

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.

Published on Global Energy World: Sep 18, 2017

 
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