VANCOUVER, Dec. 1, 2015 /CNW/ - Finavera Solar Energy Inc. ('Finavera Solar Energy', 'Finavera' or the 'Company') (TSX-V: FVR) is pleased to announce that it has received conditional approval from TSX Venture Exchange and closed an additional loan facility for €418,000 (approximately $592,000 CAD) from a consortium of lenders that established a facility through the Company's subsidiary, Finavera Renewables Ireland Limited ('Finavera Renewables'), as announced on May 27, 2015. Proceeds are for expansion capital for the Company's wholly owned subsidiary, Solar Alliance of America, a residential solar sales and marketing firm ('Solar Alliance'), and for general working capital. The loan has a one year term and is repayable from the €7.14 million (approximately $10.1 million CAD) of proceeds from the sale of the Cloosh Valley Wind Project, expected in Q1 2016.
"This financing will allow us to continue to advance and develop the growth potential within Solar Alliance," said Finavera CEO Jason Bak. "Since the acquisition of Solar Alliance, we have been diligently working to enhance the sales and customer experience and brand awareness in order to ensure Solar Alliance is positioned for rapid growth in the California market. This expansion will increase its market share and lead to increased revenues for Solar Alliance." Bak adds, "We are continuing to develop the foundation of the Company through Solar Alliance and plan expansion via organic growth and new potential acquisitions. With the positive economics of solar energy we will encourage freedom from an antiquated utility focused model through distributed power generation."
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 early 2016, thereby triggering payment to Finavera Renewables. Until repayment, the loan facility is secured against Finavera Renewables and guaranteed by the Company. An additional 500,000 bonus warrants of the Company will be issued to the Lenders, exercisable into an equal number of common shares of Finavera at an exercise price of $0.10 per share for a term of one year.
Jason Bak, CEO
About Finavera Solar Energy Inc. (www.finavera.com)
Finavera is focusing its renewable energy development efforts on residential and utility scale solar projects in America. Through its subsidiary, Solar Alliance of America, Finavera's 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 360MW of wind projects and subsequently sold them to utilities or large independent power producers.
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 Solar Energy, Inc.
For further information: Finavera Solar Energy, Jason Bak, CEO, +1 (604) 288-9051, [email protected]