Canadian company Finavera Wind Energy Inc (CVE:FVR) said Wednesday it has agreed a EUR-3.76-million (USD 4m) loan to complete its acquisition of residential solar sales and marketing firm Solar Alliance of America.
Finavera will pay for San Diego-based Solar Alliance with approximately 11.9 million own shares and contingent payments of up to USD 4 million, in four USD-1-million instalments. It signed a share purchase agreement for the acquisition earlier in May. The deal was first announced in August 2014r.
The Canadian company said the loan would enable it to scale up the target company's operations in California.
The one-year secured loan will be repaid from the EUR 7.14 million of proceeds expected in 2015 from the sale of the Cloosh Valley wind project in Ireland. Finavera said that construction on the project has started and that financial close was expected to occur this year, triggering payment to Finavera Renewables Ireland Ltd.
"The financing is non-dilutive to shareholders and allows the Company to bring forward expected capital and accelerate its plans for the development of Solar Alliance into a significant player in the US residential solar market," said Finavera chief executive Jason Bak.
(EUR 1.0 = USD 1.090)
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