Solar Alliance to buy EPC firm Aries Solar

Solar Alliance Energy has announced it will acquire Aries Solar, a company which offers installation services for solar energy solutions, from Thompson Machinery Commerce Corporation.

Solar Alliance will acquire all of the assets of Aries, including a pipeline of commercial projects. The Aries team consists of experienced commercial solar project developers and technical staff that will enhance Solar Alliance's ability to increase commercial project deal flow across the company's operations in California, the Northeast U.S. and the Southeast U.S.

There are 45 projects at various stages including prospecting, proposal, and contract negotiations. The total potential revenue from all projects if built is approximately US$18.84 million. The potential net profit that may be derived from the projects if built is approximately US$3.79 million.

The company anticipates the projects in the pipeline will be financed through a variety of third party mechanisms that will provide funding for equipment and other costs of goods. Solar Alliance will be required to cover payroll costs associated with the new Aries team once the acquisition is complete, however, the company does not anticipate a material funding requirement to move the projects through the various development stages to installation.

Under the terms of the Letter of Intent signed, the purchase price for 100% of Aries Solar, LLC is a contingent payment of US$1 million. Solar Alliance will allocate 20% of net income from the current Aries project pipeline to Thompson Machinery until such time as the contingent payment is fulfilled. Commercial projects signed after the acquisition are not subject to the net income allocation described above. There is no guarantee that all of the projects in the pipeline will reach the installation stage.

Aries is an established turn-key commercial solar energy solution provider with industry experts that focus on engineering, procurement, and construction needs. Aries is licensed to operate in four Southeast U.S. states and collectively their professionals have installed 5 MW of solar, including several high-profile installations.

Completion of the proposed Transaction Agreement remains subject to the satisfaction of a number of conditions precedent, including further due diligence and required TSX Venture Exchange approval.