Stock for Vancouver’s Solar Alliance Energy Inc. (TSX-V:SAN), a former junior wind power developer, shot up more than 150% this morning on the announcement the company plans to buy an undisclosed company in the U.S.
The company’s share price spiked from $0.07 to $0.18 per share Tuesday, April 4, on heavy trading after the company issued a press release stating it had signed a letter of intent (LOI) to buy “certain assets of a U.S. solar company.”
Solar Alliance is not disclosing the name of the company.
“Pursuant to the LOI, Solar Alliance will acquire the Seller's team of employees and acquire the Seller's pipeline of in-process residential solar projects,” the company said in a news release.
According to Solar Alliance’s press release, the company it hopes to acquire generated US$35 million in revenue in 2016. Under the terms sketched out in its press release, Solar Alliance would pay up to $2 million in “contingent payments" for the company's assets.
Solar Alliance was a B.C.-based wind power developer before abandoning wind power for residential solar power marketing.
Finavera owned a number of wind power projects in B.C., including the Meikle Wind Energy Project. In 2013, it sold its B.C. wind assets to Pattern Energy Group (TSX:PEGI) for $28 million.
In 2014, it acquired a California company, Solar Alliance of America Inc., for US$6 million. The company specializes in marketing residential solar power.
According to Solar Alliance’s most recent financials, the company had a working capital deficit of $6.3 million as of September 2016, and an accumulated deficit of $47.8 million.
