Bluenrgy to merge with owner of 18.7 MW of solar assets
Solar panels. Source: EBRD (www.ebrd.com).
Bluenrgy Group Ltd (OTCMKTS:CBDEF), a provider of systems for managing distributed renewables, has signed a letter of intent (LoI) to acquire Green States Energy Inc (GSE), which owns 18.7 MWp of solar facilities.
The target company's assets are valued at more than USD 60 million (EUR 51m), Bluenrgy said today.
The LoI could lead to a merger agreement as early as October, subject to completion of due diligence, among other conditions. GSE shareholders are to get 34 million Bluenrgy ordinary shares and warrants to purchase additional shares.
Bluenrgy chairman and managing director William Morro said GSE's solar installations are providing strong and predictable cash flows from long-term contracts with investment-grade utilities and municipalities, and added that the merger will result in shareholders' equity of more than USD 25 million for the combined company.
"The resulting expansion of our shareholder base and increase in capitalisation should allow BlueNRGY to meet all of the quantitative requirements for regaining its NASDAQ listing," Morro also said.
GSE chief executive Wallace Giakas commented that GSE has always used the technology of Bluenrgy's Draker subsidiary and that GSE's generation assets are an ideal showcase for Bluenrgy's tools for optimising grid integration and maximising solar project revenue. "As the GSE sites are upgraded and enhanced to add storage and other functionality, we are confident that they will provide compelling validation of the advantages of deploying BlueNRGY's controllers, software and analytics," Giakas added.