Canadian renewable energy provider UGE International Ltd (OTCQB: UGEIF), on Monday said it has entered into an agreement to fully acquire Toronto-based rival Endura Energy Project Corp.
UGE has agreed to pay CAD 1 million (USD 750,000 /EUR 700,000) in cash to a company, controlled by Cameron and Alison Steinman, the founders of Endura, and further issue 8,888,888 common shares of UGE, which will be subject to an escrow agreement providing for release of 25% of the shares on the closing date of the acquisition and 25% over the next three years.
The deal is expected be closed in January, 2016 and the cash portion of the acquisition will be paid through senior bank debt.
Since its incorporation in 2001, Endura consults on, designs and builds medium and large-scale solar energy systems in Canada, the US, and Latin America. Since 2009, Endura has been responsible for advising on or implementing over 250 megawatts of solar photovoltaic systems. It closed its financial year, ended October 31, 2015, with revenues of CAD 11 million and a net income of CAD 1 million.
UGE stated that it plans to leverage Endura's project implementation platform to expand its capabilities and accelerate renewable energy project deployment in each of its key markets, which have traditionally included the US, Panama, Philippines, and China.
With the acquisition, UGE will have a significant market share in Canada as well, as the country looks set to adopt more progressive clean energy goals.
Cameron Steinman, the incumbent president of Endura, will become chief strategy officer of the combined entity.
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