Solar Alliance Energy has signed a letter of intent (LOI) with Thompson Machinery Commerce Corporation to acquire Aries Solar, an established Tennessee commercial solar company that is licensed to operate in four Southeast U.S. states. Pursuant to the LOI, Solar Alliance will acquire all of the assets of Aries, including a pipeline of commercial projects with a potential revenue of $18 million (unaudited). 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. The company anticipates this acquisition will materially increase revenues and net income at Solar Alliance.

“This acquisition accelerates our expansion plans in the commercial solar sector and brings us significant revenue potential, commercial project expertise and geographic diversification,” said Chairman and CEO Jason Bak. “We see significant market potential in commercial solar and this acquisition will allow us to take advantage of this growing sector. The team at Aries will be a welcome addition to Solar Alliance and will add technical and sales expertise that will drive commercial business across our entire organization.”

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:

• Aries partner Appalachian Electric Cooperative on January 12, 2017 officially powered on its 1.37-MW community solar installation in New Market, Tennessee. It was the first utility-scale community solar project in the state.
• The Knoxville Zoo took a major step towards sustainability when they worked with Aries to install a 48.02-kW solar photovoltaic system on the elephant house. This project was more than just installing solar panels on a roof; it was a major partnership that included the City of Knoxville, who owns the buildings at the zoo.

Under the terms of the LOI, the purchase price for 100% of Aries Solar is a contingent payment of $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.