Solar Alliance to buy EPC firm Aries Solar

Canadian firm Solar Alliance Energy Inc (CVE:SAN) has signed a Letter of Intent (LOI) to buy US-based Aries Solar LLC and its pipeline of commercial solar projects with a potential revenue of USD 18 million (EUR 15.8m).

Solar Alliance said in a press release on Monday it has agreed to acquire all of the target entity’s assets from Thompson Machinery Commerce Corp under a contingent payment deal of USD 1 million. Solar Alliance will allocate 20% of the net income from Aries' projects to Thompson Machinery until the contingent payment is fulfilled.

Thompson Machinery is already an investor in Solar Alliance.

Aries Solar is engaged in the provision of engineering, procurement and construction services for the commercial solar sector. It has licences to operate in four Southeast US states and has installed 5 MW of photovoltaic (PV) capacity.

"This acquisition accelerates our expansion plans in the commercial solar sector and brings us significant revenue potential, commercial project expertise and geographic diversification," said Jason Bak, Solar Alliance’s chairman and CEO.

More details of the acquisition, which is subject to due diligence and stock exchange approval, will be provided when a definitive agreement is reached, the buyer said.

In a separate statement on Friday, Solar Alliance announced the completion of a non-brokered private placement of CAD 560,000 (USD 434,000/EUR 381,000) and a brokered units offering of CAD 288,000. Units sold in the two transactions comprised one common share and one share purchase warrant. The selling price per unit was set at CAD 0.12.

(USD 1.0 = EUR 0.878)

(CAD 1.0 = USD 0.775/EUR 0.681)

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