VANCOUVER, Aug. 25, 2014 /PRNewswire/ - Finavera
Wind Energy Inc. ('Finavera Wind Energy', 'Finavera' or the
'Company') (TSX-V: FVR) is pleased to announce it has signed an
agreement on August 22nd,
2014 to acquire 100% of the equity of Solar Alliance of America,
Inc., a corporation under the laws of California ('Solar Alliance'), in a
transaction valued at $6 million
USD. Under the terms of the agreement, Finavera will
acquire Solar Alliance for $4 million
USD in cash and $2 million USD
in stock, based on the volume weighted average 20-day trading price
of Finavera following the closing of the transaction, with a floor
price of not less than $0.21 per
share. This represents a premium of approximately 45% over
the Company's previous closing price.
Solar Alliance of America, based in San Diego, California, is a solar sales and
marketing firm focused on residential solar installations. In
2013, Solar Alliance had $20.7
million in revenue (unaudited) and was ranked #49 on Inc.
magazine's Top 500 list of America's Fastest Growing Private
Companies, making it #2 in the San Diego
Area and #9 on the list of Top 100 California
companies. In 2012, Solar Alliance was rated #45 on the Top
500 list. From its inception in 2009, Solar Alliance has
installed approximately 1,350 residential solar systems in southern
California.
This transaction represents Finavera's entry into the US
residential solar market. Going forward the Company intends
to focus its renewable energy development efforts on residential
and utility scale solar projects in America. The Company
intends to finance this transaction from the approximately
$10.5 million cash receivable due
from the sale of its Irish wind energy project, which the Company
anticipates receiving towards the end Q4 2014, or by way of a
bridge financing through the issuance of debt.
Finavera CEO Jason Bak says, "The
national residential solar market in America has been growing at
60-70 percent annually due to the dramatic fall in solar panel
prices, the rise in electricity rates from traditional utilities
and the availability of tax incentives. Over the past four
years, the Solar Alliance team has grown their company aggressively
and we feel that their skill set and cash flow compliments our
renewable energy development experience. This will allow us
to jointly scale Solar Alliance over the forthcoming year in order
to take advantage of the unprecedented growth in residential
distributed solar generation."
Solar Alliance of America
President and CEO Artie Rose
will join Finavera's Board of Directors on completion of the
transaction. Artie has been involved in the solar energy
industry since 1983. He began his career in Fresno, California and has held various
executive positions over the past 30 years. In 2009, he
co-founded Solar Alliance of America, Inc. which has become one of
the fastest growing residential solar contractors in the United States. As President and CEO,
Artie's vision and marketing skills has earned him recognition as a
top senior executive in the industry. He has appeared on
hundreds of television programs, various radio programs, has
written, starred and co-produced three half hour television
programs promoting the benefits of Solar Energy and is a key note
speaker at many events. Artie also co-founded the Solar
Alliance Foundation, a 501 c-3 charitable organization that gives
free solar electric systems to disabled veterans with financial
needs. As the Foundation CEO, Artie has helped raise money
through corporate donations, charity events and fundraisers.
Artie Rose, President and CEO of
Solar Alliance of America says, "We are very excited to join forces
with Finavera. Working with their executive team will allow us to
expand our marketing to other areas throughout California and the
United States. This relationship presents excellent
growth potential and will capitalize on a very unique time in the
solar industry."
The Company anticipates closing of the transaction within 90
days, subject to due diligence and customary closing conditions
including TSX Venture Exchange approval.
Jason Bak, CEO
About Finavera Wind Energy Inc.
(www.finavera.com)
Finavera Wind Energy is a
company focused on developing renewable energy opportunities.
Our mission is to create and operate a diversified portfolio of
renewable energy projects while protecting and enhancing the
physical and social environment. Finavera has developed over
360MW of wind energy projects and subsequently sold them to
utilities or large independent power producers. Finavera is
continuing to opportunistically review prospects for growth and the
enhancement of shareholder value.
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
includes the anticipated completion of the transaction and the
related closing timeline and structure. 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, results of due
diligence investigations, 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.
Completion of the transaction is subject to a number of
conditions, including Exchange acceptance and board approval. There
can be no assurance that the transaction will be completed as
proposed or at all. Trading in the securities of Finavera Wind
Energy should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits
of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
SOURCE Finavera Wind Energy Inc.