VANCOUVER, BC–(Marketwired – September 18, 2017) – Solar Alliance Energy Inc. (‘Solar Alliance’) or (the ‘Company’) (TSX VENTURE: SAN) (OTC: SAENF) is pleased to provide an update on the Letter of Intent (“LOI”) announced on July 10, 2017 with Thompson Machinery Commerce Corporation (“Thompson Machinery”) for the acquisition of Aries Solar, LLC (“Aries”), an established commercial solar company that is licensed to operate in four Southeast U.S. states. Pursuant to the LOI, Solar Alliance will acquire all of the assets of Aries, including a pipeline of commercial projects. Thompson Machinery has also invested $265,000 in the Company’s private placement closed July 7, 2017.
The Company is pleased to report due diligence has almost been completed and the drafting of final agreements is underway. The Solar Alliance team has completed an extensive review of Aries’ personnel, project pipeline, accounting procedures, business procedures and financial stability.
During the due diligence period, Aries has successfully signed a contract for a 182 kW solar system in North Carolina. In partnership with Solar Site Design and Distributive Solar, Aries will install the 182 kW on the rooftop of Precision Part Systems in Winston-Salem, North Carolina. The project is targeted for installation this month and will be the largest rooftop solar project in the city of Winston-Salem. The project marks the first installation for Aries in North Carolina and will also be Aries first project in partnership with Solar Site Design and Distributive Solar.
“We have been impressed with the expertise and professionalism of the Aries team and we look forward to completing this acquisition,” said Chairman and CEO Jason Bak. “This latest contract with Precision Parts illustrates Aries ability to build long term relationships with key businesses and industry partners in the Southeast. The team at Aries will be a welcome addition to Solar Alliance and will add technical and sales expertise that will drive commercial business across our entire organization in addition to commercial system sales in their region.”
Aries has approximately 45 projects at various stages including prospecting, proposal, and contract negotiations. As announced on July 10, 2016 the total potential revenue from all projects if built is approximately US $18,838,000. The potential net profit that may be derived from the projects if built is approximately US $3,790,000. The Company anticipates the projects in the pipeline will be built over the upcoming year and will be financed through a variety of third party mechanisms that will provide funding for equipment and other costs of goods. The Company does not anticipate a material funding requirement to move the projects through the various development stages to installation.
Under the terms of the LOI, the purchase price for 100% of Aries Solar, LLC is a contingent payment of US$1,000,000. Solar Alliance will allocate 20% of net income from the current Aries project pipeline to Thompson Machinery until such time as the contingent payment is fulfilled. Commercial projects signed after the acquisition are not subject to the net income allocation described above. There is no guarantee that all of the projects in the pipeline will reach the installation stage.
Further details regarding the acquisition will be announced when a definitive Transaction Agreement is reached with the Seller. Completion of the proposed Transaction Agreement remains subject to the satisfaction of a number of conditions precedent, including further due diligence and required TSX Venture Exchange approval.
Jason Bak, Chairman and CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is a sales, marketing and development company focused on residential, commercial and industrial solar installations. Since we were founded in 2003, we have developed wind and solar projects that provide enough electricity to power 150,000 homes. Solar Alliance is committed to an exceptional customer experience, effective marketing campaigns and superior lead generation in order to drive sales and generate value for shareholders. Our passion is improving life through ingenuity, simplicity and freedom of choice. We make solar simple and our goal is to install solar on every available rooftop in America.
About Thompson Machinery (www.thompsonmachinery.com)
Thompson Machinery, one of the premier Caterpillar dealers in the United States was founded in Nashville in 1944. Thompson Machinery is the exclusive Caterpillar dealer for Middle Tennessee, West Tennessee, and North Mississippi. The Thompson family is also a minority owner of the Nashville Predators NHL hockey team.
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.”
For more information:
Solar Alliance Investor Relations
Spyros Karellas
Pinnacle Capital Markets
(416) 433-5696
spyros@pinnaclecapitalmarkets.ca