CHARLOTTE, N.C., April 4, 2016 /PRNewswire/ -- Blue Sphere Corporation (OTCQB: BLSP) (the "Company" or "Blue Sphere"), a clean-tech independent power producer that develops, owns and manages waste-to-energy facilities globally, announced today that the Company has signed an exclusive term sheet to acquire a 1MW waste-to-energy biogas plant from Agrilandia Societa Agricola a r.l. (the "Plant").
As proposed in the term sheet, Blue Sphere shall acquire a 100% interest in the Plant, the land where the Plant is built (approximately 2 hectares) and the feedstock inventory. The proposed acquisition also includes all operating agreements including the remainder of the power purchase agreement (PPA) that is in place with Gestore del Servizi Energetici, S.p.A (GSE). GSE is a state owned company that promotes and supports renewable energy sources in Italy, under a power purchase agreement. The Plant's PPA runs through December 31, 2027.
The proposed purchase price contemplated for the transaction is approximately $4,811,436 at the current Euro to Dollar conversion rates or approximately 4.5 times EBITDA. The purchase price will be paid in a combination of cash at closing and the assumption of bank debt from the sellers.
Austep, S.p.A, our operating partner and a global leader in waste to energy technology and management shall guarantee the annual EBITDA, which is expected to be approximately $1m. The Austep, S.p.A financial guarantee shall be further backed by an insurance policy underwritten and issued by a leading insurance provider.
The closing with the seller is subject to certain conditions including, but not limited to, the completion of due diligence by Blue Sphere and delivery to Blue Sphere prior to the execution of definitive agreements, all rights, permits, licenses, approvals and agreements required for the ownership and operation of the facility, including all governmental and regulatory approvals as well as feedstock supply agreements and power purchase agreements for the purchase of the electricity and gas produced by the facility.
Shlomi Palas, the Company's CEO, commented, "We are very excited to have signed this Term Sheet to acquire another fully operating biogas facility. This is the yet another step in the execution process of developing the many projects in our pipeline of waste-to-energy facilities."
About Austep, S.p.A.
Austep is a twenty-year old global engineering, procurement and construction (EPC) company based in Milan, Italy. Austep specializes in waste-water treatment and the design, implementation and control of biogas facilities worldwide. Austep operates in ten countries and has built nearly two hundred and fifty facilities around the globe.
About Blue Sphere Corporation
Blue Sphere Corporation, is a diversified independent power producer that develops, owns, and operates clean-tech, waste-to-energy facilities in the United States and abroad. The company primarily converts organic waste into electricity, but also has the ability to generate heat, natural gas and organic byproducts through various technologies.
Blue Sphere facilities eliminate waste that would normally be disposed in landfills, reduce greenhouse gas emissions and protect water quality, helping to solve important global environmental issues.
Blue Sphere is headquartered in Charlotte, North Carolina and has operations in the United States and Europe.
For further information about Blue Sphere, please visit the Company's website: www.bluespherecorporate.com.
This press release contains certain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties and may change at any time. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors including, without limitation, (i) uncertainties regarding general economic and market conditions, (ii) uncertainties regarding changes in the Clean tech sector, (iii) uncertainties regarding implementation of the Company's business strategy, and (iv) other risk factors as outlined in the Company's periodic reports, as filed with the U.S. Securities and Exchange Commission. As such, there is no assurance that the initiatives described in this press release will be successfully implemented or meet expectations. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/blue-sphere-working-to-add-capacity-300245225.html
SOURCE Blue Sphere Corporation