World News: 12:46 GMT Monday 14th January 2019. [Alternus Energy Inc. via Globe Newswire via SPi World News]
New York, NY, Jan. 14, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Alternus Energy Inc. (OTCMKTS: ALTN), a global renewable energy company, today announced that its wholly owned subsidiary, PC_Italia_02 S.r.l., recently completed the previously announced acquisition of 3 Italian solar PV parks from Liquid Sun S.r.l. Under the agreement, PC_Italia_02 S.r.l. paid €3.65 million (approximately $4.25 million) for certain assets, agreements and liabilities related to the ownership and operation of the three power plants. The three parks represent a total of 2.24MW of installed power located in the Budrio and Anagni regions of Italy.
The new parks, which have been operating for nearly 5 years, bring approximately €600k (approximately $700k) additional annual revenues to ALTN with over 85% operating margins. The parks benefit from feed-in-tariff (FiT) government incentives that guaranty a fixed sales price for every megawatt of energy that the parks generate over twenty years from the date of construction. As a result, ALTN has a backlog of approximately €9.5 million (approximately $11 million at current exchange rates) of contracted revenues over the next 15 years. Thereafter the parks will continue to operate profitably and sell the energy generated to the national grid at the then market rates.
In order to fund the acquisition and associated costs, ALTN, through its Netherlands Holding company, entered into the following agreements with a third party accredited investor. The Company issued a loan note in the aggregate principal amount of €3,849,333 (the “Note”) accruing interest at 12% per annum and having a six month term and upon other terms and subject to the limitations and conditions set forth in the Note. Commensurate with the Note issuance, the Company also entered i) a Security Agreement whereby the Company grants a security interest in all of the Company’s property, and ii) a Guaranty whereby the Company guarantees the payment of the Note issued by PC Europe. ALTN is currently in negotiations with a leading bank in Italy to provide project finance for the parks that, if completed, will replace the Note with more suitable long-term financing.
For additional information, the Supplemental Report related to these items is available to view at:
Forward Looking Statements
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.
Globe Newswire: 12:46 GMT Monday 14th January 2019
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