- Published: 10 July 2017
- Written by Editor
Solar Alliance Signs LOI to Acquire Tennessee Commercial Solar Company
Acquisition includes ~US $18,000,000 commercial project pipeline
VANCOUVER, BC--(July 10, 2017) - Solar Alliance Energy Inc. ('Solar Alliance') or (the 'Company') (TSX VENTURE: SAN)(OTC: SAENF) 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:
Aries partner Appalachian Electric Cooperative on January 12, 2017 officially powered on its 1.37 megawatt community solar installation in New Market, Tennessee. It was the first utility-scale community solar project in the state.
The Knoxville Zoo took a major step towards sustainability when they worked with Aries to install a 48.02 kW solar photovoltaic system on the elephant house. This project was more than just installing solar panels on a roof; it was a major partnership that included the City of Knoxville, who owns the buildings at the zoo.
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.
Jason Bak, Chairman and CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is a sales, marketing and development company focused on residential, commercial and industrial solar installations. Since we were founded in 2003, we have developed wind and solar projects that provide enough electricity to power 150,000 homes. Solar Alliance is committed to an exceptional customer experience, effective marketing campaigns and superior lead generation in order to drive sales and generate value for shareholders. Our passion is improving life through ingenuity, simplicity and freedom of choice. We make solar simple and our goal is to install solar on every available rooftop in America.
Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. The words "would", "will", "expected" and "estimated" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
For more information:
Solar Alliance Investor Relations
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