WALNUT, Calif., May 31, 2016 /PRNewswire/ -- Sunvalley Solar, Inc. (OTCBB: SSOL), a leading solar power technology and solar system integration company, announced today the completion of its acquisition of Rayco Energy Inc. Rayco Energy, an established northern California company, specializes in providing cost-saving and efficient energy solutions, including LED lighting, Solar Thermal and Solar Electricity, to local communities and business units.
Rayco Energy combines energy efficiency measures with renewable energy sources and services the multi-family sector (Apartments, Homeowner Associations (HOA)) and small-sized commercial projects. These two sectors are currently underserved and have high growth patterns predicted over the next 10 years as land becomes more expensive and urban density increases in Northern and Southern California. Rayco is an established market leader in the multi-family sector and positioned for steady growth over the next 5 years. Energy savings projects (solar, lighting, controls) are all market ready and have been adopted by mainstream clients.
Dr. James Zhang, CEO/President of SSOL, notes that, "The acquisition will not only expand our existing solar business footprint from mainly Southern California to Northern California, it will also expand our business coverage from commercial solar systems to the residential and multi-family sectors The acquisition will accelerate Sunvalley's revenue growth and business expansion. We are very excited about adding additional experienced management and EPCM professionals to our Sunvalley team." This EPCM group specializes in development, engineering and management of residential and multi-family sector projects, while subcontracting much of the construction. The Rayco energy business is expected to contribute significantly to Sunvalley's revenues in 2016.
The acquisition will be funded through the issuance of restricted shares of SSOL Series B Preferred stock and $350K in cash. The cash portion is conditional upon the 2016 net operating profit of Rayco Energy, Inc, as a wholly-owned subsidiary of the Buyer.
About Sunvalley Solar, Inc.
Sunvalley Solar, Inc. is a leading solar system solution provider that offers comprehensive solar energy technology, system design, installation, equipments, and technical support for electrical contractors, builders, homeowners, businesses/commercial buildings, and government entities that assist them in lowering of utility bills, reducing environmental impacts, and increasing energy reliability and independence through solar energy. Located in Los Angeles, California, Sunvalley Solar, Inc. is committed to reducing the world's carbon foot print from traditional energy sources to make renewable sources such as solar the nation's mainstream source of power.
To learn more, visit www.sunvalleysolarinc.com.
Forward-Looking Statement: The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes, and delays in product development plans and schedules, or market acceptance.
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SOURCE Sunvalley Solar, Inc.