VANCOUVER, May 4, 2015 /CNW/ - Finavera Wind Energy Inc.
('Finavera Wind Energy', 'Finavera' or the 'Company') (TSX-V:
FVR) is pleased to announce it has signed a Share Purchase
Agreement (the "Agreement") to acquire 100% of the equity of Solar
Alliance of America, Inc. ("Solar Alliance"). Under the terms
of the Agreement, Finavera will acquire Solar Alliance for
11,915,238 shares of the Company and contingent payments of up to
$4 million USD in cash comprised of
up to four instalments of $1 million
USD.
"The residential solar market in America represents a revolution
for distributed renewable power generation." said Finavera CEO
Jason Bak. "The market for
residential solar power in America is expected to be 100 gigawatts
by 2020, which is 100X today's market. The acquisition of
Solar Alliance provides an exciting growth platform for Finavera to
capitalize the expansion of this market and the opportunities it
will present. We plan to grow Solar Alliance organically
throughout California and make
further acquisitions in order to become a significant player in the
US residential solar market. This expansion will create value
for the Company in the near term, with much greater long term
potential for shareholders."
"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," said
Artie Rose, President and CEO of
Solar Alliance of America. "This relationship presents
excellent growth potential and will capitalize on a very unique
time in the solar industry."
The contingent payments are subject to Solar Alliance meeting
certain revenue targets during any of the fiscal quarters beginning
after the closing date of the agreement and ending on or before
December 31, 2017. Contingent
payments are due 30 days after the end of any fiscal quarter that
triggers such payment. In addition, the contingent payments
will be adjusted for certain working capital items and related
future cash flows.
As part of the purchase price, the Company will advance
$1.2 million USD to Solar Alliance,
of which $400,000 USD is an advance
to the Vendors to be deducted from the future contingent payments.
The balance of the payment will be for working capital and
business expansion. The Agreement is subject to TSX Venture
Exchange approval and customary closing conditions.
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 more than 1,500 residential solar systems in southern
California. Solar Alliance
President and CEO Artie Rose will
join Finavera's newly formed Advisory Board on completion of the
transaction.
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 360 megawatts
of wind 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.
About Solar Alliance Of America Inc.
(www.solarallianceofamerica.com)
Located in San Diego, California, Solar Alliance is a
solar sales and marketing firm focused on residential solar
installations. In 2013, Solar Alliance had $20.7 million in revenue 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 more than 1,500 residential solar systems in southern
California.
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."
SOURCE Finavera Wind Energy Inc.