Solar Alliance Energy Inc.
Solar Alliance Signs Operations and Maintenance Contract with Knoxville Utilities Board
Wednesday, March 13, 2019 7:00 AM
VANCOUVER, BC AND KNOXVILLE, TN / ACCESSWIRE / March 13, 2019 / Solar Alliance Energy Inc. (‘Solar Alliance') or (the ‘Company') (TSX-V: SOLR) is pleased to announce it has been awarded an Operations and Maintenance ("O&M") contract with the Knoxville Utilities Board ("KUB") for the utility's solar facilities. The O&M contract is for a term of 3 years plus an option for an additional 2 years and provides an additional stable, recurring revenue stream to the Company. The contract includes the installation of a monitoring system, preventative maintenance and any repair work required.
"We are proud to be working with the Knoxville Utilities Board to provide operations and maintenance services to their solar facilities," said CEO Myke Clark. "The Solar Alliance team will be responsible for completing all maintenance and repairs, both scheduled and non-scheduled, during the contract period. Operations and maintenance contracts leverage our team's expertise and allow us to generate a material recurring revenue stream without having to increase our overhead. This contract award marks another maintenance contract in our growing O&M portfolio for utilities, municipalities and large commercial clients. Solar Alliance also offers maintenance services for small commercial and residential clients and will be targeting other O&M opportunities in the future as we continue to develop this business line," concluded Clark.
The O&M contract signed with KUB, combined with current and potential additional O&M contracts in the future, adds a fourth distinct revenue stream for Solar Alliance as the Company implements its updated strategic plan to grow a stable, profitable company. In 2018, the Company experienced a ten-fold increase in commercial solar installations over the previous year and entered into agreements with a Fortune Global 500 company in the southeast US and a large property developer in California. These agreements total almost 3 megawatts ("MW") of solar projects and set the stage for future large-scale projects. Solar Alliance also enhanced its sales process for targeting small- to mid-sized commercial projects in order to increase revenue turnover and improve cashflow. Finally, the Company launched "SunBox", a new product offering that provides a simple, efficient solar system specifically designed for architects, new home builders and their customers. These four revenue streams – large scale commercial, mid-sized commercial, SunBox and O&M contracts - form the basis of Solar Alliance's long-term strategy. Each has a different revenue and growth profile that, when combined, have the potential to deliver significant long-term value for Solar Alliance shareholders.
Private Placement Update
On March 13, 2019 the Company closed the second tranche of its non-brokered private placement offering (the "Offering") announced on February 11, 2019. The Offering comprises the issuance of up to 16,666,667 units (each a "Unit") at a price of $0.03 per Unit for gross proceeds of up to $500,000 through a non-brokered private placement. Each Unit will consist of one common share of the Company (each, a "Share") and one Share purchase warrant (a "Warrant"). One Warrant will entitle the holder thereof to purchase one Share of the Company at a price of $0.05 per Share for a period of one year from the date of issue.
On March 13, 2019, the Company issued an aggregate of 1,070,000 Units for gross proceeds of $32,100. All securities issued and issuable are subject to a hold period in Canada expiring on July 15, 2019.
Certain insiders of the Company (the "Purchasing Insiders") are participating in the Offering. Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), a purchase by the Purchasing Insiders would be a "related party transaction". The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Offering in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101, as neither the fair market value of the securities received by such parties nor the proceeds for such securities received by the Company exceeds 25% of the Company's market capitalization as calculated in accordance with MI 61-101.
For more information:
Solar Alliance Sales
Myke Clark, CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an international energy solutions provider focused on residential, commercial and industrial solar installations. The Company operates in California, Tennessee, North/South Carolina and Kentucky and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed wind and solar projects that provide enough electricity to power 150,000 homes. Our passion is improving life through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally-friendly source of electricity generation, and provides affordable, turnkey clean energy solutions.
Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. The words "would", "will", "expected" and "estimated" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
SOURCE: Solar Alliance Energy Inc.