UPDATE - Solar Alliance can get USD 3.8m in profits from Aries Solar buy
Solar array. Author: U.S. Department of Agriculture .
Solar Alliance Energy Inc (CVE:SAN) said on Tuesday it can potentially realise a net profit of roughly USD 3.8 million (EUR 3.3m) provided that all projects of its acquisition target Aries Solar LLC are completed.
Canada-based Solar Alliance earlier this week signed a Letter of Intent (LOI) to buy US-based Aries Solar LLC and its pipeline of 45 commercial solar projects in different stages of development, including prospecting, proposal and contract negotiations. If constructed, the projects will bring a potential revenue of about USD 18.8 million.
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. Solar Alliance has agreed to a USD-1-million contingent payment deal for Aries Solar’s assets and project pipeline with one of its own investors, Thompson Machinery Commerce Corp.
The buyer expects to finance the projects through various third-party mechanisms, while it does not anticipate a material funding requirement for the schemes. It noted that it is not guaranteed that all projects in the pipeline will move through the installation phase.
Solar Alliance will provide further details of the deal upon signing a definitive agreement. Its completion is subject to due diligence and bourse clearance.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.