Sustainable Energy: Non- Exclusive License sold for $2.5 Million
Sustainable Energy Technologies Ltd. announced that it has agreed to sell a non-exclusive license to tenKsolar Inc under which tenKsolar will be entitled to manufacture Sustainable Energy's new STX inverter platform for use with tenKsolar's proprietary RAIS® solar PV module.
tenKsolar will pay a cash consideration to Sustainable Energy of $2.5 million, plus a long term revenue stream tied to power ratings and annual production volumes of products manufactured by tenKsolar. tenKsolar has also acquired options to buy down the long term revenue obligation by paying an additional $3 million before the end of the 2013 calendar year, or an additional $8 million before the end of 2015.
Sustainable Energy will also continue to supply PARALEX inverters through the 2013 calendar year with tenKsolar committing to source at least 50% of a forecast 20MW demand in 2013 with a minimum commitment of 8MW.
The license provides continuing validation of the value of Sustainable Energy's PARALEX inverter platform in enabling emerging higher yield "parallel solar" solutions. Last month, the Company announced a joint development with Japan's Solar Frontier of a high yield parallel "AC module" for high efficiency thin film modules. (See Sustainable Energy Combines with Solar Frontier to Develop and Demonstrate First "AC Module" Configuration for High Efficiency Thin Film, November 13, 2012)
Michael Carten CEO of Sustainable Energy commented. "This is a very good agreement for both parties. Integration of the PARALEX electronics will enable tenKsolar to achieve its cost and performance targets in a very competitive pricing environment; and Sustainable Energy retains a long term revenue stream tied to tenKsolar's success."
"The agreement also enables us to focus more resources on positioning our energy storage inverter in Germany, Japan and the US. (See: Sustainable Energy Releases World Class Proprietary "AC Battery" Technology for the Growing Energy Storage Market, September 27, 2012). The last 6 weeks have proven to us that power conversion solutions for low voltage batteries are more elusive than the battery industry and system integrators had anticipated. Market feedback is that we are ahead of the curve with a solution that has materially higher efficiencies than other approaches and much lower cost."
The license is non-exclusive, may not be assigned or sublicensed, and is limited in scope to PV systems using proprietary RAIS® solar PV modules manufactured by tenKsolar. The license does not include Sustainable Energy's proprietary firmware, which Sustainable Energy will continue to supply to tenKsolar. tenKsolar will also back-license all improvements to the product design developed by it over the next 3 years on a royalty free basis. Under the agreement, which is subject to tenKsolar shareholder approval, tenKsolar will pay $1.5 million by December 19, 2012, and will pay the balance in two equal tranches at the end of June and December, 2013.
Headquartered in Minneapolis, Minnesota, tenKsolar designs, manufactures and markets the tenKsolar RAIS® solution which offers a complete, turnkey commercial rooftop and space-constrained ground mount applications photovoltaic system. Its patent pending Cell Optimizing technology yields maximum solar output and multiple levels of redundancy to ensure long-term reliability.
About Sustainable Energy:
Sustainable Energy (www.SustainableEnergy.com) designs and manufactures advanced power electronics for distributed smart grid and micro-grid applications. Advanced power electronics are a critical interface between all distributed generation and storage systems devices, ensuring the delivery of high quality alternating current (AC) to the power grid as well as providing utility control over the interconnection and power quality. Sustainable Energy has designed a simple low cost platform that is software configurable for a wide range of low voltage generation and storage technologies, including solar PV fuel cells and all the emerging battery technologies. The Company's platform is based on breakthroughs in power conversion technology that enable its platform to convert high current/low voltage DC into high quality AC with conversion efficiencies that are materially higher than anything in the market.
Sustainable Energy's growth strategy is to partner strategically with companies that have the products and/or market position to leverage the benefits of the Company's technologies into superior product solutions.
Michael Carten, CEO
Alliance Advisors, LLC
Alan Sheinwald, President and Founder