Finavera Wind Energy: Loan for Solar Alliance Acquisition
Vancouver, Canada - Finavera Wind Energy Inc. ('Finavera Wind Energy', 'Finavera' or the 'Company') (TSX-V: FVR) is pleased to announcethat it has received approval from TSX Venture Exchange and closed a secured loan facility for €3,757,000 (approximately $5,080,000 CAD) from a consortium of lenders through the Company's subsidiary, Finavera Renewables Ireland Limited ('Finavera Renewables'), in order to complete the acquisition of Solar Alliance of America, a residential solar sales and marketing firm ('Solar Alliance'), and for general working capital. As previously announced, 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 installments of $1 million USD, subject to certain closing conditions. This loan facility will allow the Company to scale up Solar Alliance's operations in California though an increased sales presence and additional installation and financing partnerships. The loan has a one year term and is repayable from the €7.14 million (approximately $9.64 million CAD) of proceeds from the sale of the Cloosh Valley Wind Project, expected in 2015.
"The financing is non-dilutive to shareholders and allows the Company to bring forward expected capital and accelerate its plans for the development of Solar Alliance into a significant player in the US residential solar market," said Finavera CEO Jason Bak. "This begins a new chapter in Finavera's history and represents a milestone in our Company as we focus on delivering distributed solar generation directly to American households and enabling independence from a power industry model established over one hundred years ago." Bak adds, "Since Finavera's inception we have developed and sold over 360 megawatts of utility-scale renewable energy projects with capital costs of over one billion dollars. Now, in conjunction with the talent incorporated in Solar Alliance and its market share, we will apply that development expertise to the sales and installation of solar power on a potential 113 million US homes, of which less than 1% already have installed solar systems."
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 $19.1 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.
The Company also advises that construction has begun on the Cloosh Valley Wind Project and it is anticipated that financial close will occur in 2015, thereby triggering payment to Finavera Renewables. Until repayment, the loan is secured against Finavera Renewables and guaranteed by the Company. A Finder's Fee of €175,000 is payable in connection with the transaction, along with 250,000 warrants of the Company with an exercise price of $0.085 and an exercise term of one year.
Finavera Wind Energy
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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.