Proactiveinvestors USA & Canada Alternus Energy Inc https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Alternus Energy Inc RSS feed en Sun, 24 Mar 2019 12:17:57 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Alternus Energy completes acquisition of three solar parks in Italy from Liquid Sun Srl ]]> https://www.proactiveinvestors.com/companies/news/212611/alternus-energy-completes-acquisition-of-three-solar-parks-in-italy-from-liquid-sun-srl-212611.html Alternus Energy Inc (OTCMKTS:ALTN)  said Tuesday that it has completed the acquisition of three Italian solar photovoltaic parks from Liquid Sun Srl.

The New York-based renewable energy company said in a press release that under the deal announced in late 2017, its subsidiary PC Italia 02 Srl paid €3.65 million ($4.25 million) for assets, agreements and liabilities related to the ownership and operation of the three power plants. They represent a total of 2.24 megawatts of installed power in the Budrio and Anagni regions of Italy.

READ: Alternus Energy powers up its portfolio, scouting out solar parks across Europe

The solar parks, according to Alternus, have been operating for almost five years and add about €600,000 ($700,000) in annual revenue to the company, with operating margins of more than 85%.

The parks benefit from feed-in-tariff government incentives that guarantee a fixed sales price for every megawatt of energy that the parks generate over 20 years from the date of construction, Alternus said.

The company has a backlog of about €9.5 million ($11 million) of contracted revenue over the next 15 years.

“It is personally very pleasing to finally complete this acquisition that we announced in late 2017,”  Vincent Browne, CEO, president and chairman of Alternus, said in a statement. “It emphasizes our continued commitment and growth in the Italian market going forward with additional strategic acquisitions in the pipeline there.”

To fund the acquisition and related costs, Alternus said it issued a loan note in the aggregate principal amount of €3.8 million with annual interest at 12% per annum and having a six-month term.

The company added that it is in negotiation with an Italian bank to provide project financing for the solar parks. If completed, the financing will replace the note with more suitable long-term financing, according to Alternus.

Shares slipped US$0.03 to US$0.11 in Monday’s OTC Markets trading.

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Tue, 15 Jan 2019 08:20:00 -0500 https://www.proactiveinvestors.com/companies/news/212611/alternus-energy-completes-acquisition-of-three-solar-parks-in-italy-from-liquid-sun-srl-212611.html
<![CDATA[News - Alternus Energy powers up its portfolio, scouting out solar parks across Europe ]]> https://www.proactiveinvestors.com/companies/news/211433/alternus-energy-powers-up-its-portfolio-scouting-out-solar-parks-across-europe-211433.html As the effects of climate change manifest along our coastlines, the call for clean energy production has grown louder.

Solar parks across the globe are harnessing the sun’s energy as a source of power, and Alternus Energy Inc (OTCMKTS:ALTN) is scooping them up one by one.

The green energy producer owns and operates a diverse portfolio of international solar parks spanning Europe.

The company has been strategic in its acquisitions, scouting locations based on their origination and connection to government contracts.

READ: Power Clouds changes name to Alternus Energy as it looks to alternative energy beyond solar

Founded in January 2014 by solar power industry veteran Robert Forlani, its first plant was up and running in Romania by April of that year.

By the following April, the company went public on the OTC Markets in the US.

Alternus Energy is led by Vincent Browne, a former executive at Esat Telecom Group with a number of technology start-ups under his belt.

Location, location, location

Diversification is a fundamental element to Alternus Energy’s acquisition plans.

“We don’t have one big park that generates all of our revenue. We buy numbers of smaller operating parks that are diverse, so if anything were to change in one park or if it didn’t work for a while you wouldn’t really notice it on our revenues,” said Browne in an exclusive interview with Proactive Investors.

Acquiring parks in different jurisdictions leaves the company less vulnerable to laws changing by country, although Browne notes that is a rare occurrence in Europe.

The European Council voted to increase its percentage of renewable energy to 30% from its current level of 15%.

Europe made the commitment to increasing its renewable energy level and puts its money where its mouth is.

The acquired parks, mainly in Italy, Germany, Romania and, soon, in the Netherlands, are connected to national power grids and benefit from government-backed feed-in tariffs.

The tariffs are similar to a cashback program, supporting the development of renewable power generation via payments to generators of green energy.

The long-term supply contracts guarantee a predictable income flow for 20 years or longer.

When deciding on an asset, another fundamental factor in that decision is the return, said Browne.

The acquired parks are high-margin, delivering 85% to 90% even to margin cash flows.

The company views the assets as financial products, describing them as, in effect, a proxy for a bond.

Funding acquisitions

Alternus Energy’s knowledge of the parks it acquires is a differentiating factor from its competitors, which are mostly investment funds.

Browne notes that while investment funds may sit and wait for a deal to come or go, Alternus Energy takes an active role in its assets by partnering with the constructor.

“You have to make sure it has the right planning. You have to look at the technical aspects and make sure it’s built appropriately. If you’re buying it secondary, you have to make sure all the permits exist,” explained Browne.

This approach to market and the company’s partnership with specialist local developers and plant construction companies allows them to buy the completed parks below market prices paid by investment funds and other larger operators.

Local banks provide up to 80% of the acquisition funding at low fixed rates from 10 to 18 years.

Rising revenue

The renewable energy company saw a double-digit jump in revenue in its fiscal second quarter as it continued to gain ground in the European market.

Revenues for the nine months ended September 30, 2018  totaled $2.3 million, a 46% increase from the $1.5 million reported in the same period for the previous year.

Operating profit in the nine months nearly doubled to $338,279 compared with a loss of $12,738  reported in the same period last year.

Alternus Energy credits the increases in revenue and profit to the acquisition of two solar parks in Italy in 2017.

Since the parks acquired are already operational, it’s an instant revenue boost for the company’s balance sheet.

READ: Solar energy provider Power Clouds sees double-digit revenue growth in 2Q as it gains grounds in Europe

Its European expansion into Germany continued along as well, having completed five of the seven solar parks it acquired.

The company will end 2018 with 10 megawatts owned is currently averaging five megawatts of new power per month, which would indicate an additional 60 megawatts in 2019 and beyond if all else stays the same.

Each megawatt, subject to the tariffs not changing,  generates approximately €100,000 a year, said Browne.

If the 60-megawatt goal is reached by next year, it would translate into about €6 million of annual revenues locked in for 20 years.

Going forward

Formerly known as Power Clouds, the company recently underwent a name change to expand long-term options beyond the solar industry, possibly to other forms of alternative energy or energy storage.

Alternus Energy expects to uplist to a national exchange as early as next year, but exactly which exchange its ticker will call home has yet to be decided.

The Nasdaq is tech-friendly, but several high-profile energy companies list on the New York Stock Exchange.

The NYSE would also allow for a dual listing on the Frankfurt exchange, where some of its assets are located.

The company currently trades on the Pink Sheets, but will list on either the OTCQB or OTCQX once its annual audits – currently underway– are completed. While this will be another step in the uplist journey, the company doesn’t expect to be on there for long.

“I call us the three-year overnight success,” said Browne.

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

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Tue, 18 Dec 2018 13:40:00 -0500 https://www.proactiveinvestors.com/companies/news/211433/alternus-energy-powers-up-its-portfolio-scouting-out-solar-parks-across-europe-211433.html
<![CDATA[News - Power Clouds changes name to Alternus Energy as it looks to alternative energy beyond solar ]]> https://www.proactiveinvestors.com/companies/news/210711/power-clouds-changes-name-to-alternus-energy-as-it-looks-to-alternative-energy-beyond-solar-210711.html Alternus Energy Inc (OTCMKTS:ALTN) is officially the new moniker for Power Clouds following approval from the Financial Industry Regulatory Authority.

The renewable energy company acquires solar parks across Europe, mainly in Italy and Germany, specifically scooping up parks connected to national power grids that benefit from feed-in tariffs.

The name change to Alternus, the Latin word for alternative, gives the company the long-term opportunity to expand beyond solar power into other forms of alternative energy.

READ: Solar energy provider Power Clouds sees double-digit revenue growth in 2Q as it gains grounds in Europe

"We plan to further progress into other European markets in 2019 and look forward to announcing some of the other exciting developments we are currently working on as they come to fruition as we continue our mission to become a leading independent power producer in green energy, and to do so at the lowest possible risk and highest possible returns for our shareholders,” said CEO Vincent Browne in the company’s press release.

The company currently trades on the Pink Sheets but has plans to uplist to a national exchange as early as next year.

Shares of Alternus Energy were flat at $0.06 in Thursday morning trading.

 

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Thu, 06 Dec 2018 10:39:00 -0500 https://www.proactiveinvestors.com/companies/news/210711/power-clouds-changes-name-to-alternus-energy-as-it-looks-to-alternative-energy-beyond-solar-210711.html
<![CDATA[Media files - Power Clouds Inc changes its name to Alternus Energy Inc ]]> https://www.proactiveinvestors.com/companies/stocktube/11399/power-clouds-inc-changes-its-name-to-alternus-energy-inc-11399.html Fri, 30 Nov 2018 13:24:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/11399/power-clouds-inc-changes-its-name-to-alternus-energy-inc-11399.html <![CDATA[News - Solar energy provider Power Clouds sees double-digit revenue growth in 2Q as it gains grounds in Europe ]]> https://www.proactiveinvestors.com/companies/news/206512/solar-energy-provider-power-clouds-sees-double-digit-revenue-growth-in-2q-as-it-gains-grounds-in-europe-206512.html Power Clouds Inc (OTCMKTS:PWCL) saw a double-digit jump in revenue in its fiscal second quarter as the renewable energy company gains ground in the European market.

The New York-based company, which  operates solar parks in Europe, specifically in Italy and Germany, saw second-quarter revenue that totaled $984,713, a 50% increase from the $655,010 reported in the previous year’s second quarter.

Quarterly profit nearly doubled to $537,171 compared with $293,120 reported in the same period last year.

Power Clouds credits the revenue and profit increases to its recent acquisition of two solar parks in Italy.

The energy company is continuing its European expansion into Germany, having completed five of the seven solar parks it acquired.

“Our expansion into Germany continues on target with five of the seven parks we acquired in June now completed. These first seven parks represent 3MW of installed power that combined will deliver approximately $340k of additional annual revenues and $300k of EBITDA for the next 20 years,” said CEO Vincent Browne in the company’s press release.

Power Clouds is rolling up small operational European Utility Scale Solar parks at discounts of up to 25% on secondary market pricing.  The main growth strategy is targeted on acquiring identical highly profitable operating power plants to build a diversified portfolio across multiple geographies.

All parks are connected directly to national power grids under 20 year fixed priced government contracts which deliver stable and predictable income streams from the first day of ownership. The certainty of income from government contracts allows PWCL to fund up to 80% of the acquisition cost from leading local banks at low interest rates that are fixed for 10 years or more.

These combined elements deliver higher returns on investment for PWCL than are typical in the industry, it said. The company currently has 10MW operational in Italy, Germany and Romania with contracts to acquire 200MW+ over the next 2-3 years in Germany alone.

The final acquisitions in Germany will be completed using the $20 million the company received from financial services company InMost Partners LLC.

Shares of the company were flat at $0.06 in Friday afternoon trading.

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Fri, 05 Oct 2018 14:34:00 -0400 https://www.proactiveinvestors.com/companies/news/206512/solar-energy-provider-power-clouds-sees-double-digit-revenue-growth-in-2q-as-it-gains-grounds-in-europe-206512.html
<![CDATA[Media files - Power Clouds makes headway into the European market, as revenue jumps by 50% ]]> https://www.proactiveinvestors.com/companies/stocktube/10757/power-clouds-makes-headway-into-the-european-market-as-revenue-jumps-by-50-10757.html Fri, 05 Oct 2018 13:55:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10757/power-clouds-makes-headway-into-the-european-market-as-revenue-jumps-by-50-10757.html