VANCOUVER, British Columbia, and KNOXVILLE, Tenn., Nov. 12, 2018 (GLOBE NEWSWIRE) — Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR) is pleased to announce it has reached an agreement with NuYen Blockchain Inc. (“NuYen”) for the development of the Company’s cryptocurrency mining facility in Murphysboro, Illinois.
NuYen has proposed a joint venture with the Company pursuant to which the Company will transfer the Murphysboro Facility to NuYen in exchange for NuYen reimbursing the Company US$40,000 representing the costs incurred by the Company to date. The Company will retain a 2% net profits interest royalty in any blockchain mining operations conducted at the Murphysboro Facility payable to the Company quarterly. NuYen will upgrade the warehouse at its own cost for tenancy and undertake to contract the Company to fund the cost to construct and install a 1 MW solar project at the Murphysboro Facility at an agreed upon mark-up to cost. The Company will have the right of first offer to bid on an additional 4 MW solar expansion and battery storage when the Murphysboro Facility is expanded.
The Company announced the acquisition of the 165,000 square foot warehouse facility in Murphysboro, Illinois for a nominal cost on June 13, 2018 (the “Murphysboro Facility”). The Murphysboro Facility has access to low cost grid supplied power that would be complemented with a behind the meter solar array. The concept was to upgrade the warehouse, build a solar array to supplement the power grid and provide a supply of low-cost power to the cryptomining tenants. On July 11, 2018 the Company announced that it had signed a memorandum of understanding (the “MOU”) with NuYen a private company focused on the mining of cryptocurrency and the development of blockchain IP whereby NuYen would have become a tenant at the Murphysboro Facility.
“Solar Alliance has been focused primarily on expanding our operations in the U.S. southeast, including the commencement of construction of the 2.4 MW ground mounted commercial solar project being constructed for a Fortune Global 500 company,” said COO Myke Clark. ”This agreement allows Solar Alliance to focus on our core business of commercial and industrial solar while participating in the financial upside of cryptocurrency mining. This transaction with NuYen will allow the Company to generate a revenue stream from its 2% net profits interest royalty and a profit margin on the 1 MW solar project. We look forward to working with NuYen Blockchain on this project and believe it provides a template for the use of solar to support the energy intensive cryptocurrency mining sector,” concluded Clark.
Jason Bak is a director and shareholder of the Company and a director and shareholder of NuYen. Closing of this transaction is subject to the approval of the TSX Venture Exchange. The boards of directors of both the Company and NuYen have each determined that the proposed Transaction is in the best interest of their respective shareholders with each having taken into account advice from their financial and legal advisors, as applicable. Mr. Bak, having declared his conflict of interest, abstained from voting on this Transaction and the remaining directors unanimously approved the Transaction.
Jason Bak, Chairman and CEO
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About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an international energy solutions provider focused on residential, commercial and industrial solar installations. The Company operates in California, Tennessee, North/South Carolina and Kentucky and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed wind and solar projects that provide enough electricity to power 150,000 homes. Our passion is improving life through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customers’ vulnerability to rising energy costs, offers an environmentally-friendly source of electricity generation, and provides affordable, turnkey clean energy solutions.
Statements in this news release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, constitute Forward-looking statements. The words “would”, “will”, “expected” and “estimated” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”