Finavera Wind Energy to Acquire Solar Alliance of America
Finavera Wind Energy has announces it has signed an agreement to acquire 100% of the equity of Solar Alliance of America 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 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.
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."
