Finavera Enters US Solar Market with Acquisition of Solar Alliance of America
VANCOUVER, May 4, 2015 /PRNewswire/ - Finavera Wind Energy Inc. ('Finavera Wind Energy', 'Finavera' or the 'Company') (TSX-V: FVR) is pleased to announce it has signed a Share Purchase Agreement (the "Agreement") to acquire 100% of the equity of Solar Alliance of America, Inc. ("Solar Alliance"). Under the terms of the Agreement, Finavera will acquire Solar Alliance for 11,915,238 shares of the Company and contingent payments of up to $4 million USD in cash comprised of up to four instalments of $1 million USD.
"The residential solar market in America represents a revolution for distributed renewable power generation." said Finavera CEO Jason Bak. "The market for residential solar power in America is expected to be 100 gigawatts by 2020, which is 100X today's market. The acquisition of Solar Alliance provides an exciting growth platform for Finavera to capitalize the expansion of this market and the opportunities it will present. We plan to grow Solar Alliance organically throughout California and make further acquisitions in order to become a significant player in the US residential solar market. This expansion will create value for the Company in the near term, with much greater long term potential for shareholders."
"We are very excited to join forces with Finavera. Working with their executive team will allow us to expand our marketing to other areas throughout California and the United States," said Artie Rose, President and CEO of Solar Alliance of America. "This relationship presents excellent growth potential and will capitalize on a very unique time in the solar industry."
The contingent payments are subject to Solar Alliance meeting certain revenue targets during any of the fiscal quarters beginning after the closing date of the agreement and ending on or before December 31, 2017. Contingent payments are due 30 days after the end of any fiscal quarter that triggers such payment. In addition, the contingent payments will be adjusted for certain working capital items and related future cash flows.
As part of the purchase price, the Company will advance $1.2 million USD to Solar Alliance, of which $400,000 USD is an advance to the Vendors to be deducted from the future contingent payments. The balance of the payment will be for working capital and business expansion. The Agreement is subject to TSX Venture Exchange approval and customary closing conditions.
Solar Alliance of America, based in San Diego, California, is a solar sales and marketing firm focused on residential solar installations. In 2013, Solar Alliance had $20.7 million in revenue (unaudited) and was ranked #49 on Inc. magazine's Top 500 list of America's Fastest Growing Private Companies, making it #2 in the San Diego Area and #9 on the list of Top 100 California companies. In 2012, Solar Alliance was rated #45 on the Top 500 list. From its inception in 2009, Solar Alliance has installed more than 1,500 residential solar systems in southern California. Solar Alliance President and CEO Artie Rose will join Finavera's newly formed Advisory Board on completion of the transaction.
Jason Bak, CEO
About Finavera Wind Energy Inc. (www.finavera.com)
Finavera Wind Energy is a company focused on developing renewable energy opportunities. Our mission is to create and operate a diversified portfolio of renewable energy projects while protecting and enhancing the physical and social environment. Finavera has developed over 360 megawatts of wind projects and subsequently sold them to utilities or large independent power producers. Finavera is continuing to opportunistically review prospects for growth and the enhancement of shareholder value.
About Solar Alliance Of America Inc. (www.solarallianceofamerica.com)
Located in San Diego, California, Solar Alliance is a solar sales and marketing firm focused on residential solar installations. In 2013, Solar Alliance had $20.7 million in revenue and was ranked #49 on Inc. magazine's Top 500 list of America's Fastest Growing Private Companies, making it #2 in the San Diego Area and #9 on the list of Top 100 California companies. In 2012, Solar Alliance was rated #45 on the Top 500 list. From its inception in 2009, Solar Alliance has installed more than 1,500 residential solar systems in southern California.
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."
SOURCE Finavera Wind Energy Inc.
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