SPI Solar (SOPW: OTCBB) said Sept. 16 that it has entered into an agreement to acquire certain assets relating to current SPI solar photovoltaic (PV) projects in Hawaii.
Under the terms of the agreement, SPI will acquire Hawaiian Power LLC’s (HPL’s) equity interests and debt related to an SPI/HPL joint venture to develop and operate solar PV projects in Hawaii. Due to the transaction, SPI will own a 100% interest in an entity that currently has approximately 15 MW under development in Hawaii. The aggregate purchase price for the assets is $3.95m consisting of 3,000,000 SPI Solar shares of common stock valued at $1.15 per share, subject to adjustment, and $0.5m in cash, with closing expected this month.
Separately, SPI also announced that it has commenced providing engineering, procurement and construction (EPC) services on the first 1 MW of a series of projects on Maui, Hawaii. These are four 0.25-MW projects on Maui. The estimated completion date for these projects is December 2014.
In addition, SPI has also acquired the development rights to an additional 2.5 MW of projects near Kona, Hawaii. As noted above, with SPI’s approximately 15 MW under current development in Hawaii and, with this investment, SPI’s total solar project interests in the Hawaii PV market will now be about 17.5 MW, all of which are expected to be completed throughout the remainder of 2014 and 2015.
“This announcement underscores SPI’s commitment to growing our presence in the important US solar market,” said Xiaofeng Peng, Chairman of SPI. “Hawaii, in particular, is among the country’s most attractive markets for PV investment, and we are confident these developments will result in meaningful returns for SPI.”
SPI Solar (Solar Power Inc.) is a vertically-integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services.