Solar Alliance Energy Inc. (TSX-V: SOLR), a leading provider of solar energy solutions focused on the commercial and utility solar sectors, announces that it has entered into a letter of intent dated May 16, 2023 with a growing and profitable Canadian solar company (referred to as “The Target”) in a predominantly equity-based transaction. The Target is a growing commercial and utility solar company based in Alberta with unaudited preliminary sales for fiscal year 2023 (ending July 31, 2023) of $5,801,023. Target has a backlog of contracted projects totaling over $5.6 million and expects continued revenue growth this year and beyond.
Several assets for La Cible
The Canadian company is a Western Canadian leader in solar for commercial and utility customers, with over 33 MW of commercial and utility solar projects installed. She has experience designing and installing commercial and institutional solar systems since 2013. Its growth forecast is solid, supported by a strong sales pipeline and a backlog of contracted projects. In addition, the timing is right for the Canadian solar market with the recent introduction of a 30% investment tax credit in the March 2023 federal budget. Following the transaction, on a fully diluted basis, Target’s shareholders would own approximately 25% of the issued common shares of Solar Alliance.
The non-binding LOI provides for a 90-day exclusivity period to complete due diligence, determine the final structure of the Transaction (based on legal, tax and professional advice and in accordance with applicable corporate, tax and securities laws) and enter into a binding and final agreement. For commercial and confidentiality reasons, Solar Alliance will not disclose the name of the Target until the final agreements have been signed.
