Alternus Energy Continues Italian Expansion with Purchase of Additional 5.1 MWs of Solar in Italy
Acquiring 7 Operating Solar Plants Bringing Total Installed Capacity to 29.1 MWs of Owned Solar Projects
New York, NY - (NewMediaWire) - May 15, 2019 - Alternus Energy Inc. (OTC: ALTN) (the “Company” or “Alternus”), a global renewable energy company, today announced a total acquisition that will consist of 7 operating photovoltaic plants located in Italy. In aggregate, the plants have a total installed capacity of 5.1 MWs, bringing the Company’s total European installed capacity to 29.1 MWs of owned solar projects.
The total compensation for the acquisition is approximately $8.1 million cash, less $1.5 million held back for the closing of the final plant, and less $0.4 million held in escrow against certain tax open items and as a hold back for any unexpected items. The Company will utilize its existing credit facility to fund the transaction. The closing of the final plant is expected to occur by June 30, 2019.
The 5.1MW of parks currently generate annual revenues in excess of $1.5 million at over 85% gross margins. ALTN expects to increase the annual production of the parks by about 20% after some identified remedial work which would then increase both annual revenues and gross margins by the same percentage.
Vincent Browne, Alternus Energy’s Chief Executive Officer, President and Chairman, commented, “This acquisition is a perfect fit with our business operations and long-term goals of securing long term government counter-party contracts that provide predicable positive cash flows. These particular projects have over 12 years left to run on these contracts meaning that ALTN will have over $20 million of backlog revenues contracted for the next 12 years. Thereafter the plants continue to operate and sell energy to the grid at the then prevailing market prices. This transaction also once again shows our ability to acquire assets below the prevailing market value and so we will book an immediate gain to shareholder equity reflecting this difference and increase total assets by the same amount.
“Our pipeline remains strong across Europe in Germany, Italy and The Netherlands. We are well on our way on our target to exit 2019 with over 100MWs of installed power that combined, should deliver over $15 million in recurring annual revenues and approximately $300 million contracted revenue backlog over the following 15 – 20 years.”
Full details of the transaction can be found in the Supplemental Report filed with the OTC markets at https://www.otcmarkets.com/stock/ALTN/disclosure
About Alternus Energy Inc.
Alternus Energy, Inc. is a global renewable energy company that owns and operates Utility Scale Solar parks internationally. Each solar park generates clean energy every day that is sold to national power grids under long term, government counterparty, fixed price contracts. The Company currently has operational solar parks in Germany, Italy and Romania with contracts in place to add additional solar parks in the Netherlands. For further information please go to: www.AlternusEnergy.com
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," “potential” and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the OTC Markets. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Source: Alternus Energy Inc.