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 US$4 million in cash comprised of up to four instalments of US$1 million.
As part of the purchase price, the company will advance US$1.2 million to Solar Alliance, of which US$400,000 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 US$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. 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.
Finavera CEO Jason Bak stated:
“The residential solar market in America represents a revolution for distributed renewable power generation. 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.”
Artie Rose, President and CEO of Solar Alliance of America commented:
“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."
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