Attached files
file | filename |
---|---|
EX-23.1 - EURO SOLAR PARKS, INC. | esp_ex23-1.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
S-1/A
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
|
||
Euro
Solar Parks, Inc.
|
||
Nevada
|
3433
|
26-3866816
|
(State
or jurisdiction of incorporation or organization)
|
(Primary
Standard Industrial Classification Code Number)
|
(I.R.S.
Employer Identification No.)
|
81
Elmwood Avenue
Ho-Ho-Kus,
N.J. 07423
917-868-6825
|
||
Agent
For Service:
Laughlin
Associates, Inc.
2533
N. Carson Street
Carson
City, NV 89706, USA
Phone:
+1 (775) 883-8484
Fax:
+1 (775) 883-4874
Web:
www.laughlinusa.com
|
||
Copies to:
|
||
Novi
& Wilkin
Attorneys
at Law
1325
Airmotive Way, Suite 140
Reno,
NV 89502
775-232-1950
Fax: 775-201-8331
|
Approximate
date of proposed sale to the public: As soon as practicable after this
Registration Statement becomes effective.
If this
Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the
Securities Act Registration Statement number of the earlier effective
Registration Statement for the same offering. [ ]
_______________________________________
If this
Form is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act, check the following box and list the Securities Act Registration
Statement number of the earlier effective Registration Statement for the same
offering. [ ] ______________________________
If this
Form is a post-effective amendment filed pursuant to Rule 462(d) under the
Securities Act, check the following box and list the Securities Act Registration
Statement number of the earlier effective Registration Statement for the same
offering. [ ] ______________________________
If this
Form is filed to register securities for an offering to be made on a continuous
or delayed basis pursuant to Rule 415 under the Securities Act, please check the
following box. [X]
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filed or a smaller reporting
company
Large
accelerated filer [ ]
|
Accelerated
filer [ ]
|
Non-accelerated
filer [ ]
|
Smaller
reporting
company [X]
|
CALCULATION
OF REGISTRATION FEE
Title
of Each Class of Securities to be Registered
|
Amount
to be Registered1)
|
Proposed
Maximum
Offering
Price per Share ($)
|
Proposed
Maximum Aggregate Offering Price ($)2)
|
Amount of Registration
Fee
($)
|
||||||||||||
Shares
of Common Stock, $.001 par value
|
441,800 | $ | 1.00 | $ | 441,800 | $ | 26.45 |
|
1)
|
The
shares of our Common Stock being registered hereunder for resale by the
selling security holders named in the
prospectus.
|
|
2)
|
Estimated
solely for purposes of calculating the registration fee in accordance with
Rule 457 of the Securities Act. The Company will derive no financial
benefit from the sales of these shares. The shares will be offered at
prevailing market prices or privately negotiated
prices.
|
The
Registrant hereby amends this Registration Statement on such date or dates as
may be necessary to delay its effective date until the Registrant shall file a
further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
Neither
the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the adequacy or
accuracy of the Prospectus. Any representation to the contrary is a criminal
offense.
2
Prospectus
Euro
Solar Parks, Inc.
441,800 Shares of Common Stock
$1.00 per
share
$441,800
This is
the initial offering of Common stock of Euro Solar Parks, Inc.
(ESP) and no public market currently exists for the securities being offered.
ESP (“Company,” “we,” “us,” and “our”) will derive no financial benefit from the
sales of these shares. The shares will be offered at $1.00 per share by its
selling shareholders until shares of our common stock are quoted on the OTC
Bulletin Board, or listed for trading or quoted on any other public market, and
thereafter at prevailing market prices or privately negotiated prices. Our
common stock is presently not traded on any market or securities exchange, and
we have not applied for listing or quotation on any public market. Further,
there is no assurance that our common stock will ever trade on any market or
securities exchange. We will not receive any proceeds from the resale of shares
of common stock by the selling shareholders. We will pay for all of the expenses
related to this offering.
Prior to
this offering, there has been no public market for the Company’s common
stock.
Neither
the Securities and Exchange Commission nor any state securities commission has
approved or disapproved these securities, or determined if this Prospectus is
truthful or complete. Any representation to the contrary is a criminal
offense.
The
information in this Prospectus is not complete and may be changed. The Company
may not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This Prospectus is not an offer
to sell these securities and it is not the solicitation of an offer to buy these
securities in any state where the offer or sale is not permitted.
GOING
CONCERN
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern, which contemplates the realization of its
assets and the liquidation of its liabilities in the normal course of business.
However, the Company has generated no revenues, has accumulated a loss during
its development stage, and currently lacks the capital to pursue its business
plan. This raises substantial doubt about the Company’s ability to continue as a
going concern. The financial statements do not include any adjustments that
might result from this uncertainty.
Subject
to Completion, Dated ____________, 2010
3
TABLE
OF CONTENTS
PAGE
|
|
5
|
|
5
|
|
7
|
|
8
|
|
8
|
|
13
|
|
18
|
|
18
|
|
18
|
|
19
|
|
20
|
|
20
|
|
20
|
|
21
|
|
21
|
|
21
|
|
22 | |
22 | |
22 | |
23 | |
DETERMINATION OF OFFERING PRICE | 23 |
DILUTION OF THE PRICE YOU PAY FOR YOUR SHARES | 23 |
PLAN OF DISTRIBUTION | 26 |
DESCRIPTION OF SECURITIES | 27 |
INTERESTS OF NAMED EXPERTS AND COUNSEL | 27 |
28 | |
28 | |
28 | |
29 | |
50 | |
57 | |
57 | |
59 | |
60 | |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 61 |
61 | |
61 |
4
Euro
Solar Parks, Inc.
81
Elmwood Avenue
Ho-Ho-Kus,
NJ 07423
917-868-6825
SUMMARY OF PROSPECTUS
You
should read the following summary together with the more detailed business
information, financial statements and related notes that appear elsewhere in
this Prospectus regarding Euro
Solar Parks, Inc. (the “Company”). In this Prospectus, unless the context
otherwise denotes, references to “we,” “us,” “our,” and “ESP” are to the
Company.
A
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
This
prospectus contains forward-looking statements, which relate to future events or
our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as “may,” “should,” “expects,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or
“continue” or the negative of these terms or other comparable terminology. These
statements are only predictions and involve known and unknown risks,
uncertainties and other factors, including the risks in the section entitled
“Risk Factors,” that may cause our or our industry’s actual results, levels of
activity, performance, or achievements to be materially different from any
future results, levels of activity, performance, or achievements expressed or
implied by these forward-looking statements.
While
these forward-looking statements, and any assumptions upon which they are based,
are made in good faith and reflect our current judgment regarding the direction
of our business, actual results will almost always vary, sometimes materially,
from any estimates, predictions, projections, assumptions or other future
performance suggested herein. Except as required by applicable law, including
the securities laws of the United States, we do not intend to update any of the
forward-looking statements to conform these statements to actual
results.
GENERAL INFORMATION ABOUT OUR COMPANY
Euro
Solar Parks, Inc was incorporated on October 21, 2008 in Nevada and has its
headquarters office in Ho-Ho-Kus, New Jersey.
The
Company will act as a holding company which will own 100% of the equity of local
operating companies as subsidiaries’ they either acquire or
develop The day-to-day operations of these
subsidiaries will be managed in those countries where the group
intends to have its solar power plants.
Euro
Solar Parks, Inc. will control the local operating companies (country
subsidiaries). This means the company will take care of the financial
controlling and reporting of the entire group: will monitor the day-to-day
operations of the local subsidiaries and will be responsible for investor and
public relations and fund raising.
At the
current development stage, Euro Solar Parks, Inc. will coordinates the evaluation and assessment procedures
for the development of such solar power plants. This includes the research for
and assessment of appropriate building land resources; the monitoring of the
necessary governmental licensing procedures; the evaluation of appropriate
engineers, hardware (PV systems) and software.
It is
planned to start with operational work at the beginning of 2010.
WHERE
YOU CAN FIND US
Our
offices are located at:
Euro
Solar Parks, Inc
81
Elmwood Avenue
Ho-Ho-Kus,
NJ 07423
917-868-6825
5
Agent
For Service:
Laughlin
Associates, Inc.
2533 N.
Carson Street
Carson
City, NV 89706, USA
Phone: +1
(775) 883-8484
Fax: +1
(775) 883-4874
Web: www.laughlinusa.com
DESCRIPTION
OF OUR BUSINESS
Euro
Solar Parks will develop , build
and operate commercial solar power plants with a focus on the European
solar energy market. Our vision is to supply European emerging markets with
healthy and affordable electrical energy resources.
Euro
Solar Parks will act as a holistic general contractor, which means that the
company will manage and control the entire process from development to
construction up to operation and maintenance of solar power plants. Operations
means, that the company will sell the electricity, produced by the wholly-owned
solar power plant, to the local and/or national power networks of its target
markets.
6
Euro
Solar Parks, Inc. (ESP)
THE OFFERING
This
prospectus covers the resale by the selling shareholders named in this
prospectus of 44 1,800 shares of
our common stock. The offered shares were acquired by the selling shareholders
in private placement transactions, which were exempt from the registration
requirements of the Securities Act of 1933. A Form D has
been filed with the SEC. The selling shareholders will sell their shares
of our common stock at a maximum of $1.00 per share until our common stock is
quoted on the OTC Bulletin Board, or listed for trading or quotation on any
other public market, and thereafter at prevailing market prices or privately
negotiated prices. Our common stock is presently not traded on any market or
securities exchange and we have not applied for listing or quotation on any
public market. Further, there is no assurance that our common stock will ever
trade on any market or securities exchange.
This is
our initial public offering and no public market currently exists for shares of
our common stock. We can offer no assurance that an active trading market will
ever develop for our common stock.
Securities
Being Offered:
|
441,800 Shares of common stock, $.001 par value, at
a price of $1.00 per share held by 44 selling
shareholders at $1.00, for which the Company will receive no financial
benefit.
|
Offering
Price per Share:
|
$1.00
|
Offering
Period:
|
The
shares are being offered for a period not to exceed 180
days
|
Net
Proceeds to Our Company:
|
We
will not receive proceeds from the sale of the 44 1,800
common shares offered by our selling shareholders.
|
Use
of Proceeds:
|
No
proceeds to the Company
|
Number
of Shares Outstanding Before the Offering:
|
4,145,800
|
Number
of Shares Outstanding After the Offering:
|
4,145,800
|
7
SELECTED
SUMMARY FINANCIAL DATA
This
table summarizes our operating and balance sheet data as of the periods
indicated. You should read this summary financial data in conjunction with the
“Plan of Operations” and our audited financial
Balance
Sheet Data:
|
As of
September
30, 2009
|
|||
(Unaudited)
|
||||
Cash
and cash equivalents
|
$
|
56,519
|
||
Total
assets
|
62,787
|
|||
Total
liabilities
|
19,265
|
|||
Stockholders’
Equity
|
$
|
43,522
|
As
of
|
||||
Statement
of Operations Data:
|
September
30, 2009
|
|||
(Unaudited)
|
||||
Revenues
|
$
|
0
|
||
Total
operating expenses
|
$
|
37,507
|
||
Net
(loss)
|
$
|
(37,507
|
)
|
|
Net
(loss) per share
|
$
|
(.01)
|
||
Weighted
average number of shares
|
||||
Outstanding
– basic and diluted
|
4,099,900
|
From
October 21,
|
||||
2008
(Inception) to
|
||||
Statement
of Operations Data:
|
September
30, 2009
|
|||
(Unaudited)
|
||||
Revenues
|
$ | 0 | ||
Total
operating expenses
|
$ | 58,866 | ||
Net
(loss)
|
$ | (58,866 | ) |
RISK FACTORS
RISKS ASSOCIATED WITH OUR COMPANY:
Investment
in the securities offered hereby involves certain risks and is suitable only for
investors of substantial financial means. Prospective investors should carefully
consider the following risk factors in addition to the other information
contained in this Prospectus, before making an investment decision concerning
the common stock.
GOING
CONCERN
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern, which contemplates the realization of its
assets and the liquidation of its liabilities in the normal course of business.
However, the Company has generated no revenues, has accumulated a loss during
its development stage, and currently lacks the capital to pursue its business
plan. This raises substantial doubt about the Company’s ability to continue as a
going concern. The financial statements do not include any adjustments that
might result from this uncertainty.
8
WE
MAY CONTINUE TO LOSE MONEY, AND IF WE DO NOT ACHIEVE PROFITABILITY, WE MAY NOT
BE ABLE TO CONTINUE OUR BUSINESS.
Incurred
losses
Since its
inception, the company has incurred net losses and has negative cash flows from
operations. Euro Solar Parks plans to enter commercial business activity in
early or summer of 2010. Euro Solar Parks expects to
continue to make significant capital expenditures and anticipate that these
expenses will increase in the near term as the company continues to acquire land
resources, to develop its operations and additional personnel. Euro Solar Parks
does not expect to become profitable until after the first entire solar power
plant is in operation.
The
business plan foresees the following agenda: First project will be a 6MWp solar
power plant on a 100,000 m2 land resource. Based on several comparable projects,
we expect a total development time frame of 6 to 9 months until the first power
plant starts feeding the grid. This timeframe includes planning, construction
and connection to the power grid. Euro Solar Parks does not expect to
become profitable until after the first entire solar power plant is in
operation, which is expected as per beginning of 2011.
We have,
in our history, generated no revenues from operations, have incurred substantial
expenses, and have sustained losses. In addition, we expect to continue to incur
significant operating expenses. As a result, we will need to generate
significant revenues to achieve profitability, which may not occur. Even if we
do achieve profitability, we may be unable to sustain or increase profitability
on a quarterly or annual basis in the future. We expect to have
quarter-to-quarter fluctuations in revenues, expenses, losses, and cash flow,
some of which could be significant. Results of operations will depend upon
numerous factors, some beyond our control, market acceptance of our products,
and services and competition.
THE
COMPANY IS SUBJECT TO THE RISKS INHERENT IN THE CREATION OF A NEW
BUSINESS.
Early-stage-company
Euro
Solar Parks is an early-stage company that seeks to take advantage of the
construction and operation of wholly-owned solar power plants and to sell
electricity, produced by solar energy.
There is
little meaningful historical financial or other information available upon which
an evaluation of our business and prospects can be done. Euro Solar Parks has
not begun construction of solar power plants or sale of electricity through
solar power plants. At this early stage, Euro Solar Parks has less insight into
how market and technology trends may affect Euro Solar Park’s business than the
company expects to have in the future. The revenue and income potential of Euro
Solar Park’s business is unproven. As a result, business and prospects should be
considered in light a lack of operating history and the challenges that Euro
Solar Parks will face as an early-stage company. If Euro Solar Parks is not able
to develop its business, the company will not be able to achieve its goals and
could suffer economic loss, in which case an investor may lose his entire
investment.
The
Company is subject to substantially all the risks inherent in the creation of a
new business. As a result of its small size and capitalization and limited
operating history, the Company is particularly susceptible to adverse effects of
changing economic conditions and consumer tastes, competition, and other
contingencies or events beyond the control of the Company. It may be more
difficult for the Company to prepare for and respond to these types of risks and
the risks described elsewhere in this Registration Statement than for a company
with an established business and operating cash flow.
WE
DO NOT HAVE ANY SIGNED AGREEMENTS OR CONTRACTS AT THIS TIME.
Currently,
Euro Solar Parks, Inc. does not have any customers and has not signed any sales
contracts as of September 30, 2009 .
9
ANY
FAILURE TO MAINTAIN ADEQUATE GENERAL LIABILITY, COMMERCIAL, AND SERVICE
LIABILITY INSURANCE COULD SUBJECT US TO SIGNIFICANT LOSSES OF
INCOME.
We do not
currently carry general liability, service liability and commercial insurance,
and therefore, we have no protection against any general, commercial and/or
service liability claims. Any general, commercial and/or service liability
claims will have a material adverse effect on our financial condition. There can
be no assurance that we will be able to obtain insurance on reasonable terms
when we are able to afford it.
ASSETS
AND OPERATIONS OUTSIDE THE UNITED STATES
Although
Euro Solar Parks, Inc. was organized under the laws of the State of Nevada, the
company’s principal operations and business offices will be located outside of
the United States of America.
As such,
it may be difficult for investors to enforce judgments against the company that
are obtained in the United States in any action, including actions predicated
upon civil liability provisions of the federal securities laws. In addition,
nearly all of the assets of the company will be located outside of the United
States. As a result, it may not be possible for investors to effect service of
process within the United States upon such persons or to enforce against the
company or such persons judgments predicated upon the liability provisions of
United States securities laws. In addition, as the majority of our assets are
located outside of the United States, it may be difficult to enforce United
States bankruptcy proceedings against the company. Under United States
bankruptcy laws, courts typically have jurisdiction over a debtor’s property,
wherever it is located, including property situated in other countries. Courts
outside of the United States may not recognize the United States bankruptcy
court’s jurisdiction. Accordingly, you may have trouble administering a United
States bankruptcy case involving a Nevada company as debtor with most of its
property located outside the United States. Any orders or judgments of a
bankruptcy court obtained by you in the United States may not be
enforceable.
THE
PLANNED INCREASE IN THE NUMBER OF CUSTOMERS USING OUR SERVICE MAY MAKE OUR
FUTURE RESULTS UNPREDICTABLE.
Our
future results depend on various factors, including successful selection of new
markets, market acceptance of the ESP experience, consumer recognition of the
quality of our services and products and willingness to pay our prices and
general economic conditions.
OUR
REVENUE GROWTH RATE DEPENDS PRIMARILY ON OUR ABILITY TO MULTIPLY OUR BUSINESS
MODEL AND EXPAND OUR OPERATIONS.
We may
not be able to identify and maintain the necessary markets as wells as
relationships with our customers and suppliers. Our ability to execute our
business plan also depends on other factors, including:
·
|
negotiating
representation and marketing agreements with acceptable
terms;
|
·
|
hiring
and training qualified personnel;
|
·
|
managing
marketing and development costs at affordable
levels;
|
·
|
cost
and availability of labor;
|
A
FAILURE TO MANAGE OUR GROWTH EFFECTIVELY COULD HARM OUR BUSINESS AND OPERATING
RESULTS.
Our plans
call for a significant increase in the growth of Solar Parks in Europe.
Financial and management controls and information systems may be inadequate to
support our expansion. Managing our growth effectively will require us to
continue to enhance these systems, procedures and controls and to hire, train
and retain management and staff. We may not respond quickly enough to the
changing demands that our expansion will impose on our management, employees and
existing infrastructure. We also place a lot of importance on our culture, which
we believe will be an important contributor to our success. As we grow, however,
we may have difficulty maintaining our culture or adapting it sufficiently to
meet the needs of our operations. Our failure to manage our growth effectively
could harm our business and operating results.
10
OUR QUARTERLY OPERATING RESULTS MAY
FLUCTUATE SIGNIFICANTLY AND COULD FALL BELOW THE EXPECTATIONS OF INVESTORS DUE
TO VARIOUS FACTORS.
Inability
to complete business plans
Euro
Solar Parks may be unable to complete its development, construction and
commercialization plans and the failure to do so will significantly harm the
company’s business plans, prospects, results of operations and financial
condition.
Commercializing
the solar power plants as planned and projected depends on a number of factors,
including:
|
·
|
achievement
of certain critical licenses;
|
|
·
|
further
plant and producing process
development;
|
|
·
|
research,
evaluation and purchase of latest state-of-the-art
PV-technology;
|
|
·
|
development
of the necessary large scale production
capabilities;
|
|
·
|
completion
and implementation of the company’s procurement
management;
|
|
·
|
completion
and implementation of the company’s distribution
channels;
|
|
·
|
building
and operating the initial solar power plant and demonstrating efficiencies
that will make the company’s electricity attractively
priced.
|
Further,
the company has focused primarily on research, assessment and acquisition of
appropriate land resources. Euro Solar Parks does not know whether the
processes, products or services the company has developed will be capable of
delivering solar energy to local / national power networks that meet the
requirements for cost, schedule, quality, engineering, production standards,
field certification, and volume requirements.
Because
of these factors, results for any one quarter are not necessarily indicative of
results to be expected for any other quarter or for any year. In the future, our
operating results may fall below the expectations of investors. In that event,
the value of our Common Stock or other securities would likely
decrease.
OUR
REVENUE IS SUBJECT TO VOLATILITY BASED ON THE GLOBAL ECONOMY, PRICING AND DEMAND
FOR ELECTRICAL ENERGY.
World
events and other factors could also cause our revenue to fluctuate from quarter
to quarter.
WE
MAY NOT BE ABLE TO RAISE ADDITIONAL CAPITAL ON ACCEPTABLE TERMS.
Requirement
of significant additional funds
To date,
Euro Solar Parks has had negative cash flows from the inception and set-up of
its operations and has depended on sales of the company’s equity securities to
meet the cash requirements. The company’s ability to expand its operations and
to develop fully operating solar power plants will depend upon the company’s
ability to raise significant additional financing as well as to generate
revenue. If Euro Solar Parks is unable to obtain such financing, the company
will not be able to develop its business. Specifically, Euro Solar Parks will
need to raise additional funds to:
|
·
|
incorporate
local subsidiaries;
|
|
·
|
acquire
appropriate land resources;
|
|
·
|
develop
the acquired land resources into commercial and/or industrial
ground;
|
|
·
|
plan,
develop and construct solar power
plants;
|
|
·
|
purchase
the necessary equipment, such as photovoltaic
modules;
|
|
·
|
connect
solar power plants with local / national power
networks;
|
|
·
|
pay
current operational cost for the maintenance of its solar power
plants;
|
|
·
|
finance
marketing and sales activities.
|
11
Euro
Solar Parks may not be able to obtain additional equity or debt financing as
required. Even if financing is available, it may not be available on terms that
are acceptable or favorable to the company or in sufficient amounts to satisfy
the company’s requirements. If the company requires, but is unable to obtain,
additional financing in the future, Euro Solar Parks may be unable to implement
its business plan and growth strategies, respond to changing business or
economic conditions, withstand adverse operating results and compete
effectively. More importantly, if Euro Solar Parks is unable to raise additional
financing when required, the company may be forced to scale down its operations
and its ability to generate revenues may be reduced. There are no current
arrangements to secure any such financing.
Developing
our business may require significant capital in the future. To meet our capital
needs, we expect to rely on our cash flow from operations and potentially,
third-party financing. Third-party financing may not, however, be available on
terms favorable to us, or at all. Our ability to obtain additional funding will
be subject to various factors, including market conditions, our operating
performance, lender sentiment and our ability to incur additional debt in
compliance with other contractual restrictions, such as financial covenants
under any future credit facility. These factors may make the timing, amount,
terms and conditions of additional financings unattractive. Our inability to
raise capital could impede our growth.
WE
MAY HAVE SIGNIFICANT DELAYS
Completing
the construction and installation of the first solar power plant is subject to
significant risks, including risks of delays, which might be caused by problems
with the development of land resources, engineering problems, equipment
problems, cost overruns and other start-up and operating difficulties.
Significant delays might occur during the phases of the acquisition and/or
development of land resources, especially when land resources need to be
transformed into and licensed for commercial / electricity production purpose.
Further delays might occur during the construction period as well as at the
stage of connecting the completed solar power plant with the power
grid.
If the
company experiences any of these or similar difficulties Euro Solar Parks may be
unable to complete its first solar power plant and Euro Solar Parks would likely
have no production capacity and investors could lose their entire
investment.
WE
ARE EXPOSED TO INCREASED COSTS AND RISKS ASSOCIATED WITH COMPLIANCE WITH
CHANGING LAWS, REGULATIONS AND STANDARDS IN GENERAL, AND SPECIFICALLY WITH
INCREASED AND NEW REGULATION OF CORPORATE GOVERNANCE AND DISCLOSURE
STANDARDS.
We expect
to spend an increased amount of management time and external resources to comply
with existing and changing laws, regulations and standards in general, and
specifically relating to corporate governance under the Sarbanes-Oxley Act of
2002. In particular, Section 404 of the Sarbanes-Oxley Act of 2002 requires
management to annually review and evaluate all of our internal control systems,
and file attestations of the effectiveness of these systems by our management
and by our independent auditors. This process may require us to hire additional
personnel and use outside advisory services and result in additional accounting
and legal expenses. If in the future our chief executive officer, chief
financial officer or independent auditors determine that our controls over
financial reporting are not effective as defined under Section 404, investor
perceptions may be adversely affected and could cause a decline in the value of
our stock. If our independent auditors are unable to provide an unqualified
attestation of management’s assessment of our internal control over financial
reporting, or disclaim an ability to issue an attestation, it could result in a
loss of investor confidence in our financial reports, adversely affect our stock
value and our ability to access the capital markets or borrow money. Failure to
comply with other existing and changing laws, regulations and standards could
also adversely affect the Company.
12
RISKS ASSOCIATED WITH THIS OFFERING
PURCHASERS
IN THIS OFFERING WILL HAVE LIMITED CONTROL OVER DECISION MAKING BECAUSE THE
COMPANY’S MAJOR SHAREHOLDER WILL CONTROL NOT LESS THAN 63% OF THE COMPANY’S
ISSUED AND OUTSTANDING COMMON STOCK.
Presently,
the Company’s major shareholder beneficially owns 2,900,000 (69.9%) shares of
the outstanding common stock of the Company. Because of such ownership,
investors in this offering will have limited control over matters requiring
approval by ESP shareholders, including the election of directors. Such
concentrated control may also make it difficult for ESP stockholders to receive
a premium for their shares of ESP in the event the Company enters into
transactions which require stockholder approval. In addition, certain provisions
of Nevada State law could have the effect of making it more difficult or more
expensive for a third party to acquire, or of discouraging a third party from
attempting to acquire control of the Company. For example, Nevada law provides
that a majority of the stockholders is required to remove a director, which may
make it more difficult for a third party to gain control of the Company. This
concentration of ownership limits the power to exercise control by the minority
shareholders.
INVESTORS
MAY LOSE THEIR ENTIRE INVESTMENT IF ESP FAILS TO IMPLEMENT ITS BUSINESS
PLAN.
The
Company expects to face substantial risks, uncertainties, expenses, and
difficulties because it is a development-stage company. ESP was formed in Nevada
on October 21, 2008. The Company has no demonstrable operations record of
substance upon which investors can evaluate the Company’s business and
prospects. ESP prospects must be considered in light of the risks,
uncertainties, expenses and difficulties frequently encountered by companies in
their early stages of development. The Company cannot guarantee that it will be
successful in accomplishing its objectives.
COMPETITORS
WITH MORE RESOURCES MAY FORCE US OUT OF BUSINESS.
We will
compete with many well-established companies. Aggressive pricing by our
competitors or the entrance of new competitors into our markets could reduce our
revenue and profit margins.
Electric
utility companies could lobby for a change in the relevant legislation in their
markets to protect their current revenue streams. Any adverse changes to the
regulations and policies of the solar energy industry could deter other
electricity providers or important investors from the markets, targeted by Euro
Solar Parks, Inc.
In
addition, electricity generated by PV-power plant systems mostly competes with
expensive peak hour electricity, rather than the less expensive average price of
electricity. Modifications to the peak hour pricing policies of utilities, such
as flat rate pricing, would require PV systems to achieve lower prices in order
to compete with the price of electricity.
Any
changes to government regulations or utility policies that favors electric
utility companies could reduce the company’s competitiveness and cause a
significant reduction in demand for electricity, produced and delivered by Euro
Solar Parks, Inc.
The solar
energy and renewable energy industries are both highly competitive and
continually evolving as participants strive to distinguish themselves within
their markets and compete with the larger more established electric power
industry.
Most, if
not all, of the company’s competitors across each of these segments are more
established, benefit from greater market recognition and have substantially
greater financial, development, producing and marketing resources than Euro
Solar Parks. If we the company is unable to effectively compete for customers
and suppliers, the Company’s financial condition and results of operations will
suffer.
Euro
Solar Parks is a new player in the market for energy supply in general and
renewable energy products in particular. The company has never have sold
electricity on a mass market commercial basis, and does not know whether the
company will be accepted by the market as a reliable supplier of renewable
energy.
13
The
market for renewable energy is at a relatively early stage of development and
the extent to which the market for solar energy will be widely adopted is
uncertain. If the company or its products are not accepted by the market, the
company’s business plans, prospects, results of operations and financial
condition will suffer. Moreover, demand for solar energy in the company’s
targeted emerging markets, such as Ukraine, Hungary, Romania, Bulgaria, Turkey
and Greek as well as miscellaneous South-American countries, may not develop or
may develop to a lesser extent than the company anticipates. The ability to sell
the company’s energy products at a reasonable price per watt may be affected by
a number of factors, many of which are beyond the company’s control, including
but not limited to:
|
·
|
The
company’s failure to produce solar energy-based electricity that competes
favorably against other energy products on the basis of cost, quality and
performance;
|
|
·
|
Competition
from conventional energy sources and alternative distributed generation
technologies, such as wind and water
energy;
|
|
·
|
The
company’s failure to develop and maintain successful relationships with
governmental bodies, local decision makers, systems integrators and other
engineers, as well as strategic partners;
and
|
|
·
|
Customer
acceptance of solar energy
products.
|
If the
company’s proposed energy products fail to gain sufficient market acceptance,
the company’s business plans, prospects, results of operations and financial
condition will suffer.
ESP
MAY NOT BE ABLE TO ATTAIN PROFITABILITY WITHOUT ADDITIONAL FUNDING, WHICH MAY BE
UNAVAILABLE.
The
Company has limited capital resources. To date, the Company has funded its
operations from limited funding and has not generated sufficient cash from
operations to be profitable. Unless the Company begins to generate sufficient
revenues to finance operations as a going concern, the Company may experience
liquidity and solvency problems. Such liquidity and solvency problems may force
the Company to cease operations if additional financing is not
available.
THE
COSTS TO MEET OUR REPORTING AND OTHER REQUIREMENTS AS A PUBLIC COMPANY SUBJECT
TO THE EXCHANGE ACT OF 1934 WILL BE SUBSTANTIAL AND MAY RESULT IN US HAVING
INSUFFICIENT FUNDS TO EXPAND OUR BUSINESS OR EVEN TO MEET ROUTINE BUSINESS
OBLIGATIONS.
If we
become a public entity, subject to the reporting requirements of the Securities
Exchange Act of 1934, we will incur ongoing expenses associated with
professional fees for accounting, legal and a host of other expenses for annual
reports and proxy statements. We estimate that these accounting, legal and other
professional costs could range up to $15,000 per year in the next few years and
will be higher if our business volume and activity increases but lower during
the first years of being public because our overall business volume will be
lower, and we will not yet be subject to the requirements of Section 404 of the
Sarbanes-Oxley Act of 2002.
WE
MAY HAVE DIFFICULTY IN ATTRACTING AND RETAINING MANAGEMENT AND OUTSIDE
INDEPENDENT MEMBERS TO OUR BOARD OF DIRECTORS AS A RESULT OF THEIR CONCERNS
RELATING TO THEIR INCREASED PERSONAL EXPOSURE TO LAWSUITS AND STOCKHOLDER CLAIMS
BY VIRTUE OF HOLDING THESE POSITIONS IN A PUBLICLY-HELD COMPANY.
The
directors and management of publicly-traded corporations are increasingly
concerned with the extent of their personal exposure to lawsuits and stockholder
claims, as well as governmental and creditor claims which may be made against
them, particularly in view of recent changes in laws imposing additional duties,
obligations and liabilities on management and directors. Due to these perceived
risks, directors and management are also becoming increasingly concerned with
the availability of directors and officers’ liability insurance to pay on a
timely basis the costs incurred in defending such claims. We currently do not
carry directors and officers’ liability insurance. Directors and officers’
liability insurance has recently become much more expensive and difficult to
obtain. If we are unable to provide directors and officers’ liability insurance
at affordable rates or at all, it may become increasingly more difficult to
attract and retain qualified outside directors to serve on our board of
directors.
14
We may
lose potential independent board members and management candidates to other
companies that have greater directors and officer’s liability insurance to
insure them from liability or to companies that have revenues or have received
greater funding to date, which can offer more lucrative compensation
packages. The fees of directors are also rising in response to their
increased duties, obligations and liabilities as well as increased exposure to
such risks. As a company with a limited operating history and limited
resources, we will have a more difficult time attracting and retaining
management and outside independent directors than a more established company due
to these enhanced duties, obligations and liabilities.
WE
MAY NOT ACHIEVE RESULTS SIMILAR TO THE FINANCIAL PROJECTIONS IN THIS
REGISTRATION.
Any
projections and related assumptions discussed in this registration were based on
information about circumstances and conditions existing as of the date of this
Prospectus. The projections and estimated financial results are based on
estimates and assumptions that are inherently uncertain and, though considered
reasonable by us, are subject to significant business, economic, and competitive
uncertainties and contingencies, all of which are difficult to predict and many
of which are beyond our control. Accordingly, there can be no assurance that the
projected results will be realized or that actual results will not be
significantly lower than projected. We do not intend to update the projections.
The inherent uncertainties in results increase materially for years closer to
the end of the projected period. Neither we nor any other person or entity
assumes any responsibility for the accuracy or validity of the
projections.
YOU
MAY NOT BE ABLE TO SELL YOUR SHARES IN ESP BECAUSE THERE IS NO PUBLIC MARKET FOR
THE COMPANY’S STOCK.
There is
currently no established public trading market for our securities and an active
trading market in our securities may not develop or, if developed, may not be
sustained. A market maker is needed to file an application with FINRA on our
behalf so as to be able to quote the shares of our common stock on the Over the
Counter Bulletin Board (“OTC Bulletin Board”) maintained by FINRA. Commencing
upon the effectiveness of our registration statement of which this Prospectus is
a part we will seek out a market maker The OTCBB is not a listing service or
exchange, but is instead a dealer quotation service for subscribing members.
There can be no assurance that the market maker’s application will be accepted
by FINRA, nor can we estimate as to the time period that the application will
require. If for any reason our common stock is not quoted on the OTC Bulletin
Board or a public trading market does not otherwise develop, purchasers of the
shares may have difficulty selling their common stock should they desire to do
so. No market makers have committed to becoming market makers for our common
stock at this time and none may do so.
There is
no public market for the Company’s common stock. One major shareholder currently
holds 69.9% of the ESP issued and outstanding common stock. Therefore, the
current and potential market for ESP common stock is limited. No market is
available for investors in ESP common stock to sell their shares if the Company
does not acquire listing status. The Company cannot guarantee that a meaningful
trading market will develop.
If ESP
stock ever becomes tradable, of which the Company cannot guarantee success the
trading price of ESP common stock could be subject to wide fluctuations in
response to various events or factors, many of which are or will be beyond the
Company’s control. In addition, the stock market may experience extreme price
and volume fluctuations, which, without a direct relationship to the operating
performance, may affect the market price of the Company stock.
15
ALL
OF ESP ISSUED AND OUTSTANDING COMMON SHARES ARE RESTRICTED UNDER RULE 144 OF THE
SECURITIES ACT, AS AMENDED. WHEN THE RESTRICTION ON THESE SHARES IS LIFTED, AND
THE SHARES ARE SOLD IN THE OPEN MARKET, THE PRICE OF ESP COMMON STOCK COULD BE
ADVERSELY AFFECTED.
All of
the presently outstanding shares of common stock, aggregating 4,145,800 shares
of common stock, are “restricted securities” as defined under Rule 144
promulgated under the Securities Act and may only be sold pursuant to an
effective registration statement or an exemption from registration, if
available. Rule 144, as amended, is an exemption that generally provides that a
person who has satisfied a one year holding period for such restricted
securities may sell, within any three month period (provided the company is
current in its reporting obligations under the Exchange Act), subject to certain
manner of resale provisions, an amount of restricted securities which does not
exceed the greater of 1% of a company’s outstanding common stock or the average
weekly trading volume in such securities during the four calendar weeks prior to
such sale. The Company currently has one major shareholder who owns 2,900,000
restricted shares or 69.9% of the outstanding common stock. When these shares
become unrestricted and available for sale, the sale of these shares by this
individual, whether pursuant to Rule 144 or otherwise, may have an immediate
negative effect upon the price of the Company common stock in any market that
might develop.
IF
WE FAIL TO REMAIN CURRENT ON OUR REPORTING REQUIREMENTS, WE COULD BE REMOVED
FROM THE OTC BULLETIN BOARD, WHICH WOULD LIMIT THE ABILITY OF BROKER-DEALERS TO
SELL OUR SECURITIES AND THE ABILITY OF STOCKHOLDERS TO SELL THEIR SECURITIES IN
THE SECONDARY MARKET.
Companies
trading on the OTC Bulletin Board must be reporting issuers under Section 12 of
the Exchange Act, and must be current in their reports under Section 13 of the
Exchange Act, in order to maintain price quotation privileges on the OTC
Bulletin Board. If we fail to remain current on our reporting requirements, we
could be removed from the OTC Bulletin Board. As a result, the market liquidity
for our securities could be adversely affected by limiting the ability of
broker-dealers to sell our securities and the ability of stockholders to sell
their securities in the secondary market.
This is
our initial registration and there is currently no established public trading
market for our securities and an active trading market in our securities may not
develop or, if developed, may not be sustained. A market maker is needed to file
an application with FINRA on our behalf so as to be able to quote the shares of
our common stock on the OTCBB maintained by FINRA. Commencing upon the
effectiveness of our registration statement of which this Prospectus is a part
we will seek out a market maker. There can be no assurance that the market
maker’s application will be accepted by FINRA, nor can we estimate as to the
time period that the application will require. If for any reason our common
stock is not quoted on the Over the Counter Bulletin Board or a public trading
market does not otherwise develop, purchasers of the shares may have difficulty
selling their common stock should they desire to do so. No market makers have
committed to becoming market makers for our common stock and none may do
so.
DIVIDEND
RISK
At
present, we are not in a financial position to pay dividends on our common stock
and future dividends will depend on our profitability. Investors are advised
that until such time the return on our common stock is restricted to an
appreciation in the share price.
OUR
COMMON STOCK IS SUBJECT TO THE “PENNY STOCK” RULES OF THE SECURITIES AND
EXCHANGE COMMISSION, AND THE TRADING MARKET IN OUR COMMON STOCK IS LIMITED,
WHICH MAKES TRANSACTIONS IN OUR STOCK CUMBERSOME AND MAY REDUCE THE INVESTMENT
VALUE OF OUR STOCK.
Our
shares of common stock are “penny stocks” because they are not registered on a
national securities exchange or listed on an automated quotation system
sponsored by a registered national securities association, pursuant to Rule
3a51-1(a) under the Exchange Act. For any transaction involving a
penny stock, unless exempt, the rules require:
16
|
·
|
That
a broker or dealer approve a person’s account for transactions in penny
stocks; and
|
|
·
|
That
the broker or dealer receives from the investor a written agreement to the
transaction, setting forth the identity and quantity of the penny stock to
be purchased.
|
|
·
|
The
broker or dealer must also deliver, prior to any transaction in a penny
stock, a disclosure schedule prescribed by the Securities and Exchange
Commission relating to the penny stock market, which sets forth the basis
on which the broker or dealer made the suitability determination.
Additionally, the broker or dealer must receive a signed, written
agreement from the investor prior to the
transaction.
|
|
·
|
Generally,
brokers may be less willing to execute transactions in securities subject
to the “penny stock” rules. This may make it more difficult for investors
to dispose of our common stock and cause a decline in the market value of
our stock.
|
|
·
|
Disclosure
also has to be made about the risks of investing in penny stocks in both
public offerings and in secondary trading, the commission’s payable to
both the broker-dealer and the registered representative, current
quotations for the securities, and the rights and remedies available to an
investor in cases of fraud in penny stock transactions. Finally, monthly
statements have to be sent disclosing recent price information for the
penny stock held in the account and information on the limited market in
penny stocks.
|
Generally,
brokers may be less willing to execute transactions in securities subject to the
“penny stock” rules. This may make it more difficult for investors to dispose of
our common stock and cause a decline in the market value of our
stock.
THE
MARKET FOR PENNY STOCKS HAS SUFFERED IN RECENT YEARS FROM PATTERNS OF FRAUD AND
ABUSE.
Stockholders
should be aware that, according to SEC Release No. 34-29093, the market for
penny stocks has suffered in recent years from patterns of fraud and abuse. Such
patterns include:
|
·
|
Control
of the market for the security by one or a few broker-dealers that are
often related to the promoter or
issuer;
|
|
·
|
Manipulation
of prices through prearranged matching of purchases and sales and false
and misleading press releases;
|
|
·
|
Boiler
room practices involving high-pressure sales tactics and unrealistic price
projections by inexperienced
salespersons;
|
|
·
|
Excessive
and undisclosed bid-ask differential and markups by selling
broker-dealers; and
|
|
·
|
The
wholesale dumping of the same securities by promoters and broker-dealers
after prices have been manipulated to a desired level, along with the
resulting inevitable collapse of those prices and with consequential
investor losses.
|
Our
management is aware of the abuses that have occurred historically in the penny
stock market. Although we do not expect to be in a position to dictate the
behavior of the market or of broker-dealers who participate in the market,
management will strive within the confines of practical limitations to prevent
the described patterns from being established with respect to our securities.
The occurrence of these patterns or practices could increase the volatility of
our share price.
SHARES
ELIGIBLE FOR FUTURE SALE BY OUR CURRENT STOCKHOLDERS MAY ADVERSELY AFFECT OUR
STOCK PRICE.
To date,
we have had no trading volume in our common stock. As long as this condition
continues, the sale of a significant number of shares of common stock at any
particular time could be difficult to achieve at the market prices prevailing
immediately before such shares are offered. In addition, sales of substantial
amounts of common stock under Securities and Exchange Commission Rule 144 or
otherwise could adversely affect the prevailing market price of our common stock
and could impair our ability to raise capital at that time through the sale of
our securities.
This is our initial registration
and there is currently no established public trading market for our securities
and an active trading market in our securities may not develop or, if developed,
may not be sustained. A market maker is needed to file an application with FINRA
on our behalf so as to be able to quote the shares of our common stock on the
OTCBB maintained by FINRA commencing upon the effectiveness of our registration
statement of which this Prospectus is a part. There can be no assurance that the
market maker’s application will be accepted by FINRA, nor can we estimate as to
the time period that the application will require. If for any reason our common
stock is not quoted on the Over the Counter Bulletin Board or a public trading
market does not otherwise develop, purchasers of the shares may have difficulty
selling their common stock should they desire to do so. No market makers have
committed to becoming market makers for our common stock and none may do
so.
17
DESCRIPTION OF OUR BUSINESS
Euro
Solar Parks intends to develop, build and operate
commercial solar power plants with a focus on the European solar energy market.
Our vision is to supply European emerging markets with healthy and affordable
electrical energy resources.
Euro
Solar Parks will act as
a holistic general contractor, which means that the company will manage and control the entire process from
development to construction up to operation and maintenance of solar power
plants.
Operations
means, that the company will sell the electricity, produced by the wholly-owned
solar power plant, to the local and/or national power networks of its target
markets.
GENERAL INFORMATION ABOUT OUR COMPANY
Euro
Solar Parks, Inc was incorporated on October 21, 2008 in Nevada and has its
headquarters office in Ho-Ho-Kus, New Jersey.
The
Company will act as a holding company which will own 100% of the equity of local
operating companies as subsidiaries’ they either acquire or develop. The
day-to-day operations of these subsidiaries will be managed in
those countries where the group intends to have its solar power
plants.
Euro
Solar Parks, Inc. will control the local operating
companies (country subsidiaries). This means the company will take care for the
financial controlling and reporting of the entire group, will monitor the
day-to-day operations of the local subsidiaries and will be responsible for
investor and public relations and fund raising.
At the
current development stage, Euro Solar Parks, Inc. will coordinate the evaluation
and assessment procedures for the development of such solar power plants. This
includes the research for and assessment of appropriate building land resources;
the monitoring of the necessary governmental licensing procedures; the
evaluation of appropriate engineers, hardware (PV systems) and
software.
The
company plans to commence with the operational work at the beginning of 2010,
which will include, first of all, the formation of the first local subsidiary,
the set-up of local office infrastructure and engagement of operational
staff. Furthermore, the company will drive the development of its
first solar power plant project through initializing the acquisition process of
necessary land resources and immediate start of the detailed planning work for a
first solar power plant with an approximate power output up to 6 megawatt peak
(MWp). Parallel to the ongoing development work, the company will
enter into negotiations with banks, institutional investors and government
investment funds to ensure a proper project financing, which is fundamental
precondition to start with the plant construction work.
Based on
our research on several comparable projects, we expect a total development time
frame of 9 to 12 months maximum until the first power plant will be ready to
start feeding the grid. For the period of the next 12 months, we estimate costs
from $100,000 to $150,000 to finance the start of our operational
work.
As of
today, we are not able, yet, to determine in detail the amount of cash and
capital requirements to finance the acquisition of land resources and the
construction of our first solar power plant, since acquisition and construction
cost depend on the current demand and supply situation in a specific target
market. The development of appropriate financing concepts will be part of the
early operational work.
INDUSTRY BACKGROUND
Currently,
the production and sale of renewable energy is actively supported by the
European Union and its member countries through various means such as subsidies,
investment programs, tax incentives and guaranteed feed-in tariffs (aka input
charges).
Feed-in
tariffs are based on the obligation of the European countries to purchase
renewable energy at a price level that allows competing against traditional
electricity suppliers.
Within
the European Union, feed-in tariffs range from about EUR 0.20 to EUR 0.55 per
kWh. There is no common flat unit price throughout the entire European Union but
different input charges for each single member country, based on the individual
Renewable Energy Act of each European Union member country.
18
Feed-in
tariffs (or input charges) depend on a selection of different
parameters:
|
·
|
Geographical
market (each country defines its own feed-in tariff
structure)
|
|
·
|
Specific
size of a solar power plant (indicated by megawatt output (MW) and
kilowatt peak)
|
|
·
|
Specifically
average output volume (indicated by kilowatt per
hour)
|
|
·
|
Type
of solar power plant and interconnection to other power
plants
|
Other
factors that have a significant influence on feed-in tariffs and, therefore, on
the company’s revenue, cash flows and profits are:
|
·
|
Duration
of state-guaranteed feed-in tariffs (defined by each country; the range
goes from 20 to 30 years)
|
|
·
|
Rate
of price degression (usually state-guaranteed feed-in tariffs decrease
over the a certain time period by a certain percentage; such degression
degree can range between 3% and 6% per
year)
|
|
·
|
Inflation
(some European countries fix the annual feed-in tariff with the national
inflation rate)
|
PRINCIPAL SERVICES AND THEIR MARKETS
Euro
Solar Parks is active in the Energy Sector; especially in the field of renewable
energy with focus on solar energy. The Company intends to
plan, develop, construct, operate and maintain solar power plants. The
final product that the Company will sell, and that will
generate income and cash flow, is electricity produced through solar
energy.
ESP will act as a holistic general contractor, which means the
Company will manage and control the entire process
from development to construction up to operation and maintenance of solar power
plants. This will include the following
services:
|
·
|
Planning
& development of complete turn-key solar power
plants
|
|
·
|
Research,
assessment & acquisition of the necessary land
resources
|
|
·
|
Evaluation,
assessment & purchase of appropriate PV
systems
|
|
·
|
Management
& super vision of the entire plant construction
work
|
|
·
|
Day-to-day
electricity production and feed-in into local / national power
grids
|
|
·
|
Management
& maintenance of the solar power plant
installation
|
|
·
|
Relationship
to the local authorities and electricity
supplier
|
The
Company will focus on emerging markets in Eastern
Europe and South America that guarantee, for a period of at least 25 years,
growing demand for renewable energy, attractive input charges and low
maintenance cost.
Geographic
markets of major interest are: Rumania, Ukraine, and Bulgaria as well as Turkey
and Greece and several local markets in
South-America.
19
As of
2010, the Eastern European countries do not show a significant solar power plant
industry, yet, since most of the European financial support programs for
renewable energy were focused on European Western countries, such as Germany,
Spain and Portugal, in the past.
As a
consequence of the ongoing extension and development of the European Union, this
trend has changed during the last twenty-four months. Eastern European countries
can now benefit from direct and indirect support from the European Union in form
of significant subsidies for projects in the field of renewable energy, which
opens attractive chances to successfully participate in the local market for
energy supply.
DISTRIBUTION METHODS
Euro
Solar Parks intends to develop solar power plants
for nation-wide general power networks. Target clients are national utility
corporations, owned either by a government body or group of private shareholders
who will purchase electricity directly from the company’s local solar power
plants. Euro Solar Parks will not develop
and/or build insular plants, which are only used for supplying buildings and
smaller private communities and that are not connected to the nation-wide
network. Therefore, Euro Solar Parks, Inc. will only
handle B2B (business to business) customers but
not retail customers.
To
successfully enter the targeted markets, excellent relationships to senior
decision makers of governmental bodies and/or private utility companies are
crucial key success factors.
Actually, Euro Solar Parks is developing an external
network of seasoned experts acting as representatives and lobbyist who are in
charge of providing access to the relevant decision makers of governmental
bodies and private utility companies. The direct access to senior decision
makers is essential to shorten time frame of national application and licensing
procedures and to accelerate the development and set-up of
operations.
Representatives
and other necessary local experts / advisors will
be engaged and retained on the basis of temporary consulting agreements;
consulting fees will be split into basis
retainers and success fees.
Efforts
of electric utility companies lobbying to protect their revenue
streams
Euro
Solar Parks is and will be a new player in the market for energy supply in
general and renewable energy products in particular. The company’s competitive
business conditions will depend on the various geographical target markets and
the specific development stage of their local solar energy
industry.
Euro
Solar Parks expects significant competition from traditional electric utility
companies as well as from other newly established alternative energy suppliers,
both aiming to enter the market for renewable energy products. Most of these
competitors are more established, have more market experience, benefit from
greater market recognition and have substantially greater financial,
development, producing and marketing resources than Euro Solar Parks. Strong and
well-established competitors could lobby for a change in the relevant
legislation in their markets to protect their current revenue streams. Any
adverse changes to the regulations and policies of the solar energy industry
could harm the company’s business model and render the planned business strategy
obsolete.
In
addition, electricity generated by PV-power plant systems mostly competes with
expensive peak hour electricity, rather than the less expensive average price of
electricity. Modifications to the peak hour pricing policies of utilities, such
as flat rate pricing, would require PV systems to achieve lower prices in order
to compete with the price of electricity. Therefore Euro Solar Parks not only
competes against well-established energy utility companies but also with the
technology as well as pricing and cost structure of other solar energy
suppliers.
20
In order to successfully compete, the company will focus on a precisely defined business strategy that concentrates on the following strategic key factors:
- Lean
company structure to avoid excessive administration and management
cost;
- Strong
investment discipline in the areas of acquisition of land resources and purchase
of PV systems;
-
Selective cooperation with locally leading legal advisors and engineering
firms;
-
Implementation of PV systems that provide “state-of-the-art” technology at
favorable prices;
-
Continuing cost and performance controlling to ensure profitable
operations.
In
comparison to traditional energy utility companies within the targeted
geographical markets, we believe that we will have a unique combination of
competitive strengths including fast decision process, flexible company
structure and access to cost efficient PV technology.
Nevertheless,
the market for renewable energy is at a relatively early stage of development
and the extent to which the market for solar energy will be widely adopted is
uncertain. If our company or our products are not accepted by the market, our
business plans, prospects, results of operations and financial condition will
suffer. Moreover, demand for solar energy in our targeted emerging markets, such
as Ukraine, Hungary, Romania, Bulgaria, Turkey and Greek as well as
miscellaneous South-American countries, may not develop or may develop to a
lesser extent than we anticipates. Our ability to sell our energy products at a
reasonable price per watt may be affected by a number of factors, many of which
are beyond our control, including but not limited to:
• Our
failure to produce solar energy-based electricity that competes favorably
against other energy products on the basis of cost, quality and
performance;
• Competition
from conventional energy sources and alternative distributed generation
technologies, such as wind and water energy;
• Our
failure to develop and maintain successful relationships with governmental
bodies, local decision makers, systems integrators and other engineers, as well
as strategic partners.
If our
proposed energy products fail to gain sufficient market acceptance, our business
plans, prospects, results of operations and financial condition will
suffer.
SOURCES OF AND AVAILABILITY OF SERVICES AND
MATERIALS
Dependence
on important third-party suppliers
Euro
Solar Parks will depend on a limited number of third-party suppliers that will
be responsible for engineering services and the supply of photovoltaic systems
(aka PV systems).
A
critical topic is the evaluation, selection and acquisition of the necessary
photovoltaic system (PV system). PV systems have to meet geographical and
meteorological preconditions of a specific geographical target market. The
selection of a PV system supplier that meets exactly the requirements of such
specific geographical target market is essential for the ability of a solar
power plant to produce efficient and profitable.
From this
point of view, Euro Solar Parks, Inc. mainly depends on the knowledge and
expertise of potential suppliers of PV systems. Any disruption from such service
and material suppliers could prevent the company from building solar power
plants and producing and selling cost-effective
electricity.
Euro
Solar Parks will use knowledge, materials and
components procured from a limited number of external experts and third-party
suppliers. We currently work together with a small amount of experts in the
field of development and construction of solar power plants. The company does
not currently have in place any supply contracts. If the company fails to
maintain its relationships with these experts and suppliers, or fail to secure
additional supply sources from other service and product suppliers, the company
may be unable to develop solar power plants and to produce electricity from
solar energy or the electricity delivered may be available only at a higher cost
or after a long delay. Any of these factors could prevent Euro Solar Parks from
delivering its products to customers within required timeframes, resulting in
potential order cancellations and lost revenue.
DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS
We
currently do not have any customers or signed any sales contracts with our
potential customers.
As a
nature of the energy sector, energy suppliers for mass consumption need to deal
with a small amount of large-scale distributors who buy electricity from these
suppliers. Since Euro Solar Parks will not develop and/or build insular plants,
which are only used for supplying buildings and smaller private communities and
that are not connected to the nation-wide network, target clients of Euro Solar
Parks are national utility corporations, owned either by a government body or
private shareholders. Therefore, the amount of different potential customers is
heavily limited.
21
European
large-scale distributors who buy electricity from independent suppliers of
renewable energy, such as solar energy, usually have to enter into long-term
agreements that guarantee fixed feed-in tariffs for a minimum period of 20
years. Such feed-in tariffs are based on the obligation of the European
countries to purchase renewable energy at a price level that allows competing
against traditional electricity suppliers. Terms and conditions of feed-in
agreements are based on and regulated through the individual Renewable Energy
Act of each European Union member country, but are also part of individual
negotiations with potential end-customers. Individual feed-in agreements may
include special clauses that allow customers to adjust feed-in tariffs to
national degression rates and/or inflation rates.
The
change of feed-in tariffs or loss of one of these larger customers or their
default in payment could significantly reduce the company’s revenues and harm
the operating results. The company’s customer relationships still have to be
developed over the next months and years. Therefore, Euro Solar Parks cannot
guarantee that the company will continue to receive significant revenues from
these customers over the long term.
PATENTS AND TRADEMARKS
The
Company currently has no registered patents or trademarks.
It is not
planned that the company will acquire any registered patents or trademarks in
the near future, since the planned business activity of Euro Solar Parks, Inc.
does not depend directly on any kind of patents, copyrights or
trademarks.
Patents
and trademarks are usually held by manufacturing companies of photovoltaic (PV)
cells and modules, and/or held by suppliers of entire PV systems. The purchase
and implementation of a certain PV system technology usually includes the right
to use the technology behind the implemented PV
system.
GOVERNMENT AND INDUSTRY REGULATION
Regulations
and policies and changes to these regulations and policies
The
market for electricity generating power plants is heavily influenced by foreign,
federal, state and local government regulations and policies concerning the
electric utility industry, as well as policies promulgated by electric
utilities.
These
regulations and policies often relate to electricity pricing and technical
interconnection of customer-owned electricity generation. In a number of
countries, these regulations and policies have been modified in the past and may
be modified again in the future. In addition, electricity generated by
photovoltaic systems (aka PV systems), whereas electric current is generated by
the conversion of sunlight energy into direct current, mostly competes with
expensive peak hour electricity, rather than the less expensive average price of
electricity. Modifications to the peak hour pricing policies of utilities, such
as to a flat rate, would require PV systems to achieve lower prices in order to
compete with the price of electricity generated using other
technologies.
Dependence
on government subsidies and economic incentives
The
reduction, elimination or expiration of government subsidies and economic
incentives for on-grid solar electricity could result in the diminished
competitiveness of solar energy relative to conventional and non-solar renewable
sources of energy, which would negatively affect the growth of the solar energy
industry overall and the company’s net sales specifically.
Euro
Solar Parks believes that the near-term growth of the market for on-grid
applications, where solar energy is used to supplement the electricity a
consumer purchases from the utility network, depends significantly on the
availability and size of government and economic incentives. Currently the cost
of solar electricity substantially exceeds the retail price of electricity in
every significant market in the world. As a result, federal, state and local
governmental bodies in many countries have provided subsidies in the form of
tariffs, rebates, tax write-offs and other incentives to end-users,
distributors, systems integrators and manufacturers of solar power plant systems
and PV products.
Political
changes in the company’s geographical target markets could result in significant
reductions or the elimination of incentives. Many of these government incentives
could expire, phase-out over time, exhaust the allocated funding or require
renewal by the applicable authority. A reduction, elimination or expiration of
government subsidies and economic incentives for solar electricity could result
in the diminished competitiveness of solar energy, which would in turn hurt the
company’s sales and financial condition.
RESEARCH AND DEVELOPMENT ACTIVITIES
Technological
changes
Technological
changes in the solar power industry could render the planned solar power plants
obsolete, which could prevent Euro Solar Parks from achieving sales and market
share in the future. At this time the company does not have any
operating power plants nor does it own any specialized technology of its
own.
22
If the
company will not be able to implement new approaches of producing electricity
from solar energy that can compete with such technological changes, the company
will risk that its solar electricity could become uncompetitive or obsolete,
which could prevent Euro Solar Parks from increasing sales and becoming
profitable. The solar power industry is rapidly evolving and highly competitive.
The company’s development efforts may be rendered obsolete by the technological
advances of other solar power plant operators, and other technologies may prove
more advantageous for the commercialization of solar power products. If this
occurs, the company’s sales and profits could be
diminished.
ENVIRONMENTAL LAWS
Efforts
of electric utility companies lobbying to protect their revenue
streams
Electric
utility companies could lobby for a change in the relevant legislation in their
markets to protect their current revenue streams. Any adverse changes to the
regulations and policies of the solar energy industry could deter other
electricity providers or important investors from the markets, targeted by Euro
Solar Parks, Inc.
In
addition, electricity generated by PV-power plant systems mostly competes with
expensive peak hour electricity, rather than the less expensive average price of
electricity. Modifications to the peak hour pricing policies of utilities, such
as flat rate pricing, would require PV systems to achieve lower prices in order
to compete with the price of electricity.
Any
changes to government regulations or utility policies that favors electric
utility companies could reduce the company’s competitiveness and cause a
significant reduction in demand for electricity, produced and delivered by Euro
Solar Parks, Inc.
EMPLOYEES AND EMPLOYMENT AGREEMENTS
There are
no full-time or part-time employees at this time.
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
Prospectus contains forward-looking statements about the Company’s business,
financial condition, and prospects that reflect ESP management’s assumptions and
beliefs based on information currently available. The Company can give no
assurance that the expectations indicated by such forward-looking statements
will be realized. If any of the Company assumptions should prove incorrect, or
if any of the risks and uncertainties underlying such expectations should
materialize, the actual results may differ materially from those indicated by
the forward-looking statements.
The key
factors that are not within the Company’s control and that may have a direct
bearing on operating results include, but are not limited to, the Company’s
ability to establish a customer base, managements’ ability to raise capital in
the future, the retention of key employees and changes in the regulation of the
industry in which the Company functions.
There may
be other risks and circumstances that management may be unable to predict to
sustain operations. When used in this Prospectus, words such as, “believes,”
“expects,” “intends,” “plans,” “anticipates,” “estimates” and similar
expressions are intended to identify and qualify forward-looking statements,
although there may be certain forward-looking statements not accompanied by such
expressions.
DETERMINATION OF OFFERING PRICE
The
offering price of the common stock has been arbitrarily determined and bears no
relationship to any objective criterion of value. The price does not bear any
relationship to the Company’s assets, book value, historical earnings, or net
worth. In determining the offering price, management considered such factors as
the prospects, if any, for similar companies, anticipated results of operations,
present financial resources and the likelihood of acceptance of this
offering.
DILUTION OF THE PRICE YOU PAY FOR YOUR SHARES
The
common stock to be sold by the selling security holders is common stock that is
currently issued and outstanding. Accordingly, there will be no dilution of
equity interests to our existing stockholders.
23
SELLING
SHAREHOLDERS
The
following table sets forth the shares beneficially owned, as of December 4, 2009
by the selling shareholders prior to the offering contemplated by this
Prospectus, the number of shares each selling security holder is offering by
this Prospectus and the number of shares which each would own beneficially if
all such offered shares are sold.
Beneficial
ownership is determined in accordance with Securities and Exchange Commission
rules. Under these rules, a person is deemed to be a beneficial owner of a
security if that person has or shares voting power, which includes the power to
vote or direct the voting of the security, or investment power, which includes
the power to dispose of, or to direct the disposition of, the security. The
person is also deemed to be a beneficial owner of any security of which that
person has a right to acquire beneficial ownership within 60 days. Under the
Securities and Exchange Commission rules, more than one person may be deemed to
be a beneficial owner of the same securities, and a person may be deemed to be a
beneficial owner of securities as to which he or she may not have any pecuniary
beneficial interest. Except as noted below, each person has sole voting and
investment power.
None of
the selling shareholders is a registered broker-dealer or an affiliate of a
registered broker-dealer. Each of the selling shareholders has acquired his, her
or its shares pursuant to a private placement solely for investment and not with
a view to or for resale or distribution of such securities. The shares were
offered and sold to the selling shareholders at a purchase price range from
$0.001 to $1.00 per share in a private placement (Form D
filed with the SEC) to the remaining selling shareholders pursuant to the
exemption from the registration under the Securities Act provided by section
4(2) of the Securities Act.
The
percentages below are calculated based on 4,145,800 shares of our common stock
issued and outstanding. We do not have any outstanding options, warrants or
other securities presently exercisable for or convertible into shares of our
common stock.
#
|
Name
of Selling Stockholder
|
Common
Shares Owned by Selling Stockholder1)
|
Total
Shares to be Registered
|
in
% of Issued & Outstanding Shares
|
Percentage
of Common Stock Before Offering
|
Number
of Shares Owned by Selling Stockholder After Offering
|
Percent
of Total Issued and Outstanding2)
|
1.
|
Agromerkur
AG
|
2,900,000
|
0
|
0.0%
|
69.950%
|
2,900,000
|
70.0%
|
2.
|
Partner
Capital Investment Ltd.
|
190,000
|
50,000
|
1.2%
|
4.583%
|
140,000
|
3.4%
|
3.
|
Frostilos
Business Corp.
|
180,500
|
50,000
|
1.2%
|
4.354%
|
130,500
|
3.1%
|
4.
|
Horst
Invest Corp.
|
172,000
|
50,000
|
1.2%
|
4.149%
|
122,000
|
2.9%
|
5.
|
Valentino
Marketing Ltd.
|
164,000
|
50,000
|
1.2%
|
3.956%
|
114,000
|
2.7%
|
6.
|
Una
Finance Ltd.
|
156,400
|
50,000
|
1.2%
|
3.772%
|
106,400
|
2.6%
|
7.
|
Nali
Finance Corp.
|
149,000
|
50,000
|
1.2%
|
3.594%
|
99,000
|
2.4%
|
8.
|
United
Equity Capital AG
|
142,100
|
50,000
|
1.2%
|
3.428%
|
92,100
|
2.2%
|
9.
|
Celestial
Global Holding Inc.
|
20,000
|
20,000
|
0.5%
|
0.482%
|
0
|
0.0%
|
10.
|
Centrino
Management Co., Ltd.
|
15,000
|
15,000
|
0.4%
|
0.362%
|
0
|
0.0%
|
11.
|
Green
Coast Partners Ltd.
|
12,000
|
12,000
|
0.3%
|
0.289%
|
0
|
0.0%
|
12.
|
Feng
Shui International Co., Ltd.
|
10,000
|
10,000
|
0.2%
|
0.241%
|
0
|
0.0%
|
13.
|
Apus
Holdings Inc.
|
10,000
|
10,000
|
0.2%
|
0.241%
|
0
|
0.0%
|
14.
|
Checkmate
Holdings Inc.
|
8,000
|
8,000
|
0.2%
|
0.193%
|
0
|
0.0%
|
15.
|
La
Rumba S.A.
|
8,000
|
8,000
|
0.2%
|
0.193%
|
0
|
0.0%
|
16.
|
Dimitrios
Argyros
|
6,000
|
6,000
|
0.1%
|
0.145%
|
0
|
0.0%
|
17.
|
Sven
Kriegbaum
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
18.
|
Julia
Schroeder
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
19.
|
Leano
Docal
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
20.
|
Loris
Docal
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
21.
|
Marcos
Docal
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
24
22.
|
Thorsten
Foerster
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
23.
|
Marek
Schroeder
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
24.
|
Birthe
Docal
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
25.
|
Dirk
Schewe
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
26.
|
Mathias
Drews
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
27.
|
Jan
Kriegbaum
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
28.
|
Marisa
Schroeder
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
29.
|
Bennet
Schroeder
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
30.
|
April
A. Humblias
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
31.
|
Izrael
Cohen
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
32.
|
Leaddog
Capital Partners, Inc.
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
33.
|
Leaddog
Capital Markets, LLC
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
34.
|
Kelly
T. Hickel
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
35.
|
Mia
L. Catechis
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
36.
|
Phillip
Forman
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
37.
|
Vasilios
Vordonis
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
38.
|
Neil
Mohinani
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
39.
|
Stamatios
Catechis
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
40.
|
Mark
Kaspiev
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
41.
|
Rodney
P. Leibowitz
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
42.
|
Antonio
Suffren
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
43.
|
Themistoclis
Catechis
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
44.
|
Olga
Humblias
|
100
|
100
|
0.0%
|
0.002%
|
0
|
0.0%
|
-
|
Total
|
4,145,800
|
441,800
|
10.7%
|
100.000%
|
3,704,000
|
89.3%
|
1)
|
Beneficial
ownership is determined in accordance with SEC rules and generally
includes voting or investment power with respect to
securities.
|
2)
|
Assumes
all of the shares of common stock offered are sold and, 4,145,800 common
shares are issued and outstanding.
|
There are
no agreements between the company and any selling shareholder pursuant to which
the shares subject to this registration statement were
issued.
To our
knowledge, none of the selling shareholders or their beneficial
owners:
· has
had a material relationship with us other than as a shareholder at any
time within the past three years; or
|
· has
ever been one of our officers or directors or an officer or director of
our predecessors or affiliates
|
· are
broker-dealers or affiliated with
broker-dealers.
|
25
We may require the selling shareholders to suspend the sales of the securities offered by this Prospectus upon the occurrence of any event that makes any statement in this Prospectus, or the related registration statement, untrue in any material respect or that requires the changing of statements in these documents in order to make statements in those documents not misleading. We will file a post-effective amendment to this registration statement to reflect any material changes to this Prospectus.
PLAN OF DISTRIBUTION
This
prospectus relates to the registration of 441,800
shares of common stock on behalf of the selling stockholders. We anticipate
applying for trading of our common stock on the over-the-counter (OTC) Bulletin
Board upon the effectiveness of the registration statement of which this
prospectus forms a part. To have our securities quoted on the OTC Bulletin Board
we must: (1) be a company that reports its current financial information to the
Securities and Exchange Commission, banking regulators or insurance regulators;
and (2) has at least one market maker who completes and files a Form 211 with
NASD Regulation, Inc. The OTC Bulletin Board differs substantially from national
and regional stock exchanges because it (1) operates through communication of
bids, offers and confirmations between broker-dealers, rather than one
centralized market or exchange; and, (2) securities admitted to quotation are
offered by one or more broker-dealers rather than “specialists” which operate in
stock exchanges. We have not yet engaged a market maker to assist us to apply
for quotation on the OTC Bulletin Board and we are not able to determine the
length of time that such application process will take. Such time frame is
dependent on comments we receive, if any, from the NASD (FINRA) regarding our
Form 211 application. Upon effectiveness of this registration we will seek out a
market maker.
There is
currently no market for our shares of common stock. There can be no assurance
that a market for our common stock will be established or that, if established,
such market will be sustained. Therefore, purchasers of our shares registered
hereunder may be unable to sell their securities, because there may not be a
public market for our securities. As a result, you may find it more difficult to
dispose of, or obtain accurate quotes of our common stock. Any purchaser of our
securities should be in a financial position to bear the risks of losing their
entire investment.
SALES
BY SELLING SHAREHOLDERS
The
selling shareholders may sell up to 441,800 common
shares at $1.00 or prevailing market prices or privately negotiated prices once
our shares of common stock are quoted on the Over-the-Counter Bulletin Board or
listed for trading or quoted on any other public market.
The
selling shareholders may sell some or all of their common stock in one or more
transactions, including block transactions:
|
·
|
on
such public markets as the common stock may be
trading;
|
|
·
|
in
privately negotiated transactions;
or
|
|
·
|
in
any combination of these methods of
distribution.
|
The sales
price to the public may be:
|
·
|
$1.00
as in this offering
|
|
·
|
the
market price prevailing at the time of
sale;
|
|
·
|
a
price related to such prevailing market price;
or
|
|
·
|
such
other price as the selling shareholders
determine.
|
We are
bearing all costs relating to the registration of the common stock. The selling
shareholders, however, will pay any commissions or other fees payable to brokers
or dealers in connection with any sale of the common stock.
The
selling shareholders must comply with the requirements of the Securities Act and
the Exchange Act in the offer and sale of the common stock. In particular,
during such times as the selling shareholders may be deemed to be engaged in a
distribution of the common stock, and therefore be considered to be an
underwriter, they must comply with applicable laws and may, among other
things:
26
|
·
|
not
engage in any stabilization activities in connection with our common
stock;
|
|
·
|
furnish
each broker or dealer through which common stock may be offered, such
copies of this Prospectus, as amended from time to time, as may be
required by such broker or dealer;
and
|
|
·
|
not
bid for or purchase any of our securities or attempt to induce any person
to purchase any of our securities other than as permitted under the
Exchange Act.
|
None of
the selling shareholders will engage in any electronic offer, sale or
distribution of the shares. Further, neither we nor any of the selling
shareholders have any arrangements with a third party to host or access our
Prospectus on the Internet.
The
selling shareholders and any underwriters, dealers or agents that participate in
the distribution of our common stock may be deemed to be underwriters, and any
commissions or concessions received by any such underwriters, dealers or agents
may be deemed to be underwriting discounts and commissions under the Securities
Act. Shares may be sold from time to time by the selling shareholders in one or
more transactions at a fixed offering price, which may be changed, or at any
varying prices determined at the time of sale or at negotiated prices. We may
indemnify any underwriter against specific civil liabilities, including
liabilities under the Securities Act.
DESCRIPTION OF SECURITIES
COMMON
STOCK
Our
authorized capital stock consists of 100,000,000 shares of common stock, $0.001
par value per share. The holders of our common stock (i) have equal ratable
rights to dividends from funds legally available therefore, when and if declared
by our Board of Directors; (ii) are entitled to share in all of our assets
available for distribution to holders of common stock upon liquidation,
dissolution or winding up of our affairs; (iii) do not have preemptive,
subscription or conversion rights and there are no redemption or sinking fund
provisions or rights; and (iv) are entitled to one non-cumulative vote per share
on all matters on which stockholders may vote.
SECURITY
HOLDERS
As of
December 4, 2009, there were 4,145,800 common shares issued and outstanding,
which were held by 44 stockholders of record.
NON-CUMULATIVE
VOTING
Holders
of shares of our common stock do not have cumulative voting rights, which means
that the holders of more than 50% of the outstanding shares, voting for the
election of directors, can elect all of the directors to be elected, if they so
choose, and, in such event, the holders of the remaining shares will not be able
to elect any of our directors.
DIVIDEND
POLICY
The
Company does not anticipate paying dividends on the Common Stock at any time in
the foreseeable future. The Company’s Board of Directors currently plans to
retain earnings for the development and expansion of the Company’s business. Any
future determination as to the payment of dividends will be at the discretion of
the Board of Directors of the Company and will depend on a number of factors
including future earnings, capital requirements, financial conditions and such
other factors as the Board of Directors may deem relevant.
INTERESTS OF NAMED EXPERTS AND COUNSEL
None of
the below described experts or counsel have been hired on a contingent basis and
none of them will receive a direct or indirect interest in the
Company.
Our
audited financial statements for the period ended December 31, 2008 included in
this Prospectus have been audited by the firm of Maddox Ungar Silberstein, PLLC.
We include the financial statements in reliance on their report, given upon
their authority as experts in accounting and auditing.
27
The Law
Offices of Novi & Wilkin has passed upon the validity of the shares being
offered and certain other legal matters and is representing us in connection
with this offering.
STATUS
OF ANY PUBLICLY ANNOUNCED NEW SERVICES
The
Company currently has made no public announcements regarding its
services.
EMPLOYEES
AND EMPLOYMENT AGREEMENTS
There are no full-time or part-time employees at this
time.
DESCRIPTION OF PROPERTY
We lease
the following property:
|
·
|
Address:
81 Elmwood Avenue, Ho-Ho-Kus, NJ
07423
|
|
·
|
Number
of Square Feet: 200
|
|
·
|
Name
of Landlord: Global Alternative Capital Group
LLC
|
|
·
|
Term
of Lease: Quarterly payment in
advance
|
|
·
|
Monthly
Rental: $300
|
|
·
|
Adequate
for current needs: It is adequate for the current situation of starting
and setting up the operational business. But it is not adequate in the mid
and long term. Actually, the management is evaluation several possible
locations, where to have the company’s headquarter and operations center
in the future.
|
The
Company does not own any real estate or land property.
LEGAL PROCEEDINGS
There are
no lawsuits filed or pending against the Company by others, and no lawsuits
filed or pending against others by the Company. There are no contingencies,
sureties or guaranties in existence.
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
As of
December 4, 2009, the Company has a total of 44 shareholders. No public market currently
exists for shares of our common stock. Concurrently with the
completion of this offering, we will be applying to have our common stock listed
for quotation on the Over-the-Counter Bulletin Board.
STOCK
TRANSFER AGENT
None at
this time
REPORTS
We are
subject to certain reporting requirements and will furnish annual financial
reports to our stockholders, certified by our independent accountants, and will
furnish un-audited quarterly financial reports in our quarterly reports filed
electronically with the SEC. All reports and information filed by us can be
found at the SEC website, www.sec.gov.
Our
fiscal year end is December 31. We intend to provide financial statements
audited by an Independent Registered Accounting Firm (PCOAB) to our shareholders
in our annual reports. The unaudited financial statement for the nine months at
September 30, 2009, and the audited financials from inception to December 31,
2008 immediately follows.
28
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
SEPTEMBER
30, 2009
29
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
FINANCIAL
STATEMENTS
SEPTEMBER
30, 2009
TABLE
OF CONTENTS
PAGE
|
|
F-1
|
|
FINANCIAL
STATEMENTS:
|
|
F-2
|
|
F-3
|
|
F-4
|
|
F-5
|
|
F-6
– F-9
|
30
Maddox Ungar Silberstein,
PLLC CPAs and Business Advisors
Phone
(248) 203-0080
Fax (248)
281-0940
30600
Telegraph Road, Suite 2175
Bingham
Farms, MI 48025-4586
www.maddoxungar.com
January
13, 2010
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of
Directors
Euro
Solar Parks, Inc.
Ho-Ho-Kus,
New Jersey
To Whom
It May Concern:
Maddox
Ungar Silberstein, PLLC hereby consents to the use in the Form S-1/A, Amendment
No. 1, Registration Statement under the Securities Act of 1933, filed by Euro
Solar Parks, Inc. of our report dated October 29, 2009, relating to the
financial statements of Euro Solar Parks, Inc., a Nevada Corporation, as of and
for the period ending December 31, 2008, and the reference to us under the
caption “Experts”.
Sincerely,
/s/ Maddox Ungar
Silberstein, PLLC
Maddox
Ungar Silberstein, PLLC
Bingham
Farms, MI
F-1
31
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
AS
OF SEPTEMBER 30, 2009 (UNAUDITED) AND DECEMBER 31, 2008(AUDITED)
ASSETS
|
September
30, 2009 (Unaudited)
|
December
31, 2008 (Audited)
|
||||||
Current
Assets
|
||||||||
Cash
|
$ | 56,519 | $ | 0 | ||||
Stock
subscription receivable
|
4,535 | 97,753 | ||||||
Prepaid
expenses
|
1,733 | 0 | ||||||
TOTAL
ASSETS
|
$ | 62,787 | $ | 97,753 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
Liabilities
|
||||||||
Accrued
expenses
|
$ | 3,288 | $ | 6,500 | ||||
Accrued
expenses – related party
|
15,977 | 14,859 | ||||||
TOTAL
LIABILITIES
|
19,265 | 21,359 | ||||||
STOCKHOLDERS’
EQUITY
|
||||||||
Common
stock, 100,000,000 shares authorized, par value $0.001; 4,145,800 and
4,054,000 shares issued and outstanding, respectively
|
4,146 | 4,054 | ||||||
Additional
paid in capital
|
98,242 | 93,699 | ||||||
Deficit
accumulated during the development stage
|
(58,866 | ) | (21,359 | ) | ||||
TOTAL
STOCKHOLDERS’ EQUITY
|
43,522 | 76,394 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 62,787 | $ | 97,753 |
Accompanying
notes are an integral part of the financial statements.
F-2
32
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
PERIOD
FROM OCTOBER 21, 2008 (INCEPTION) TO SEPTEMBER 30, 2009
Nine
Months Ended September 30, 2009
|
Period
from October 21, 2008 (Inception) to September 30, 2009
|
|||||||
GROSS
REVENUES
|
$ | 0 | $ | 0 | ||||
OPERATING
EXPENSES
|
||||||||
Director
fees
|
7,500 | 9,167 | ||||||
General
and administrative
|
9,951 | 10,017 | ||||||
Professional
fees
|
20,056 | 39,682 | ||||||
TOTAL
OPERATING EXPENSES
|
37,507 | 58,866 | ||||||
OPERATING
LOSS
|
(37,507 | ) | (58,866 | ) | ||||
PROVISION
FOR INCOME TAXES
|
0 | 0 | ||||||
NET
LOSS
|
$ | (37,507 | ) | $ | (58,866 | ) | ||
WEIGHTED
AVERAGE NUMBER OF SHARES OUTSTANDING
|
4,099,900 | |||||||
NET
LOSS PER SHARE
|
$ | (0.01 | ) |
The
accompanying notes are an integral part of the financial
statements.
F-3
33
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS’ EQUITY
AS
OF SEPTEMBER 30, 2009
Common
Stock
|
Additional
Paid
|
Accumulated
|
||||||||||||||||||
Shares
|
Amount
|
in
Capital
|
Deficit
|
Total
|
||||||||||||||||
Balance,
October 21, 2008 (Inception)
|
0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Common
stock issued
|
4,054,000 | 4,054 | 93,699 | - | 97,753 | |||||||||||||||
Net
loss for the period ended December 31, 2008
|
- | - | - | (21,359 | ) | (21,359 | ) | |||||||||||||
Balance,
December 31, 2008
|
4,054,000 | 4,054 | 93,699 | (21,359 | ) | 76,394 | ||||||||||||||
Common
stock issued
|
91,800 | 92 | 4,543 | - | 4,635 | |||||||||||||||
Net
loss for the nine months ended September 30, 2009
|
- | - | - | (37,507 | ) | (37,507 | ) | |||||||||||||
Balance,
September 30, 2009
|
4,145,800 | $ | 4,146 | $ | 98,242 | $ | (58,866 | ) | $ | 43,522 |
The
accompanying notes are an integral part of the financial
statements.
F-4
34
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2009
PERIOD
FROM OCTOBER 21, 2008 (INCEPTION) TO SEPTEMBER 30, 2009
Nine
Months Ended September 30, 2009
|
Period
from October 21, 2008 (Inception) to September 30, 2009
|
|||||||
Cash
Flows from Operating Activities
|
||||||||
Net
loss for the period
|
$ | (37,507 | ) | $ | (58,866 | ) | ||
Adjustments
to Reconcile Net Loss to Net Cash Used in Operating
Activities
|
||||||||
Changes
in Assets and Liabilities
|
||||||||
(Increase)
in prepaid expenses
|
(1,733 | ) | (1,733 | ) | ||||
Increase
(decrease) in accrued expenses
|
(3,212 | ) | 3,288 | |||||
Increase
in accrued expenses – related party
|
1,118 | 15,977 | ||||||
Net
Cash Provided by (Used in) Operating Activities
|
(41,334 | ) | (41,334 | ) | ||||
Cash
Flows from Financing Activities
|
||||||||
Cash
received for common stock
|
97,853 | 97,853 | ||||||
Net
Cash Provided by Financing Activities
|
97,853 | 97,853 | ||||||
Net
Increase in Cash and Cash Equivalents
|
56,519 | 56,519 | ||||||
Cash
and Cash Equivalents – Beginning
|
0 | 0 | ||||||
Cash
and Cash Equivalents – Ending
|
$ | 56,519 | $ | 56,519 | ||||
Supplemental
Cash Flow Information
|
||||||||
Cash
paid for interest
|
$ | 0 | $ | 0 | ||||
Cash
paid for income taxes
|
$ | 0 | $ | 0 | ||||
Supplemental
Disclosure of Non-Cash
Financing
Activities
|
||||||||
Stock
subscriptions receivable
|
$ | 4,535 | $ | 4,535 |
The
accompanying notes are an integral part of the financial
statements.
F-5
35
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
AS
OF SEPTEMBER 30, 2009
NOTE
1 – NATURE OF BUSINESS
Euro
Solar Parks, Inc. was incorporated in Nevada on October 21, 2008. The
Company’s business purpose is building and operating commercial solar power
plants with a focus on the European solar energy market.
NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This
summary of significant accounting policies of the Company is presented to assist
in understanding the Company’s financial statements. The financial
statements and notes are representations of the Company’s management, who is
responsible for their integrity and objectivity. These accounting
policies conform to generally accepted accounting principles and have been
consistently applied to the preparation of the financial
statements.
Basis of
Accounting
The
accompanying financial statements have been prepared using the accrual basis of
accounting in accordance with accounting principles generally accepted in the
United States of America. The Company is currently a development
stage enterprise. All losses accumulated since the inception of the
business have been considered as part of its development stage
activities. Revenues are recognized as income when earned and
expenses are recognized when they are incurred.
Basis of
Presentation
The
accompanying unaudited financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America,
and should be read in conjunction with the audited financial statements and
notes thereto.
Development Stage
Company
The
accompanying financial statements have been prepared in accordance with the
accounting principles related to development-stage companies. A
development stage company is one in which planned principal operations have not
commenced or, if its operations have commenced, there has been no significant
revenues there from.
Cash and Cash
Equivalents
For
purposes of the accompanying financial statements, the Company considers all
highly liquid instruments with an initial maturity of three months or less to be
cash equivalents.
Fair Value of Financial
Instruments
The
Company’s financial instruments consist of cash and cash equivalents, payables
and accrued expenses. The carrying amount of these financial
instruments approximates fair value due either to length of maturity or interest
rates that approximate prevailing market rates unless otherwise disclosed in
these financial statements.
F-6
36
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
NOTES
TO THE FINANCIAL STATEMENTS
AS
OF SEPTEMBER 30, 2009
NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Income
Tax
Deferred
income taxes reflect the net effect of (a) temporary difference between carrying
amounts of assets and liabilities for financial purposes and the amounts used
for income tax reporting purposes, and (b) net operating loss
carryforwards. No net provision for refundable Federal income tax has
been made in the accompanying statements of loss because no recoverable taxes
were paid previously. Similarly, no deferred tax asset attributable
to the net operating loss carryforward has been recognized, as it is not deemed
likely to be realized.
Management
Estimates
The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Estimates and assumptions have been made in
determining the depreciable lives of such assets and the allowance for doubtful
accounts receivable. Actual results could differ from these
estimates.
Recently Issued Accounting
Guidance
The
Company does not expect the adoption of recently issued accounting
pronouncements to have a significant impact on the Company’s results of
operations, financial position or cash flow.
Comprehensive Income
(Loss)
The
Company has established standards for the reporting and display of comprehensive
income and its components in the financial statements. There were no
items of comprehensive income (loss) applicable to the Company during the period
covered in theses financial statements.
Net Loss Per
Share
The
Company presents basic loss per share on the face of the statements of
operations. Basic loss per share is calculated as income available to
common stockholders divided by the weighted average number of shares outstanding
during the period. As of September 30, 2009, the Company had no stock
options or securities convertible into any form of equity outstanding;
therefore, no diluted loss per share is shown. All shares issued as
part of our initial capitalization have been treated as having been outstanding
since our inception on October 21, 2008.
NOTE
3 – PREPAID EXPENSES
Prepaid
expenses consist of one month of services with a shareholder of the Company from
a one year contract expiring October 30, 2009 and three months of prepaid
rent.
F-7
37
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
NOTES
TO THE FINANCIAL STATEMENTS
AS
OF SEPTEMBER 30, 2009
NOTE
4 – ACCRUED EXPENSES
Accrued
expenses consisted of the following at December 31, 2008:
September
30, 2009
|
December
31, 2008
|
|||||||
Accrued
professional fees
|
$ | 1,500 | $ | 6,500 | ||||
Accrued
rent
|
375 | 0 | ||||||
Accrued
website maintenance
|
1,396 | 0 | ||||||
Accrued
office expenses
|
17 | 0 | ||||||
Total
Accrued Expenses
|
$ | 3,288 | $ | 6,500 |
NOTE
5 – ACCRUED EXPENSES – RELATED PARTY
During
the year ended December 31, 2008, the Company did not have a bank account and a
shareholder of the Company paid certain expenses. The funds are
non-interest bearing and due on demand. During the nine months ended
September 30, 2009 some additional expenses of the Company were paid by the
related party. As of September 30, 2009, the balance due to related
party is $15,977.
NOTE
6 – INCOME TAXES
For the
period ended September 30, 2009, the Company incurred a net loss of
approximately $38,000 and therefore has no tax liability. At
September 30, 2009, Euro Solar Parks had an unused net operating loss carryover
approximating $59,000 that can be used through the year 2028 to offset future
taxable income. In the future, the cumulative net operating loss
carry-forward for income tax purposes may differ from the cumulative financial
statement loss due to timing differences between book and tax
reporting.
The
cumulative tax effect at the expected rate of 34% of significant items
comprising our net deferred tax amount is as follows:
September
30, 2009
|
December
31, 2008
|
|||||||
Deferred
tax asset attributable to:
|
||||||||
Net
operating loss carryover
|
$ | 20,000 | $ | 7,300 | ||||
Valuation
allowance
|
(20,000 | ) | (7,300 | ) | ||||
Net
deferred tax asset
|
$ | -0- | $ | -0- |
NOTE
7 – OPERATING LEASE
The
Company leases office space under an operating lease from a director of the
Company. The lease began July 1, 2009 and is payable quarterly
at $300 per month. The lease ends upon notification by written notice
not less than 90 days prior to the date of termination. No security
deposit was required.
F-8
38
EURO
SOLAR PARKS, INC.
(A
DEVELOPMENT STAGE COMPANY)
NOTES
TO THE FINANCIAL STATEMENTS
AS
OF SEPTEMBER 30, 2009
NOTE
8 – RELATED PARTY TRANSACTION
The
Company has entered into an agreement with a shareholder for his services as
director and officer of the Company for a period of one year commencing on the
date of the agreement, being October 30, 2008. The agreement is for a
base fee of $10,000. Eleven months of the contract amount have been
expensed at September 30, 2009. The agreement also provides that the
shareholder receive 5,000 shares of common stock subject to Rule
144. The shareholder paid the $5 par value for these shares in
October 2009. The agreement has been renewed for an additional
year at the same base fee for 2009-2010.
NOTE
9 – STOCKHOLDERS’ EQUITY
In 2008,
the Company issued 4,054,000 shares of common stock. These shares
were recorded as stock subscription receivable at December 31, 2008, as payment
for these shares was not made in 2008. The Company received $97,753
for the stock during May 2009.
During
the nine months ended September 30, 2009, the Company issued an additional 100
shares of common stock. The Company received $100 for these shares on
September 29, 2009.
The
Company also had an additional 91,700 shares of common stock subscribed for and
recorded as a stock subscription receivable during the nine months ended
September 30, 2009. Payment for these shares was not received as of
September 30, 2009.
NOTE
10 – GOING CONCERN
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern. The Company has sustained losses
since inception. The financial statements do not include any
adjustment that might be necessary if the Company is unable to continue as a
going concern.
In view
of this matter, the ability of the Company to continue as a going concern is
dependent upon growth of revenues and the ability of the Company to raise
capital from the sale of its common stock and/or obtaining debt financing and
attaining future profitable operations. Management believes that its
successful ability to raise capital and increases in revenues will provide the
opportunity for the Company to continue as a going concern.
NOTE
11 – SUBSEQUENT EVENTS
Management
has evaluated subsequent events through the date on which the financial
statements were submitted to the Securities and Exchange Commission and has
determined it does not have any material subsequent events to
disclose.
F-9
39
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
You
should read this section in conjunction with our financial statements and the
related notes included in this Prospectus. Some of the information contained in
this section or set forth elsewhere in this Prospectus, including information
with respect to our plans and strategies for our business, statements regarding
the industry outlook, our expectations regarding the future performance of our
business, and the other non-historical statements contained herein are
forward-looking statements.
OVERVIEW/BUSINESS
OF ISSUER/ PLAN OF OPERATION
Euro
Solar Parks, Inc. (“Euro Solar Parks”) intends to develop,
build and operate commercial solar power plants with a focus on the
European solar energy market.
Euro
Solar Parks will act as a holistic general
contractor, which means that the company will manage and
control the entire process from development to construction up to
operation and maintenance of solar power plants.
Operations
means, that the company will sell the electricity, produced by the wholly-owned
solar power plant, to the local and/or national power networks of its target
markets.
a. Describe
how these products or services are to be produced or rendered and how and when
the Company intends to carry out its activities. If the Company plans to offer a
new product(s), state the present stage of development, including whether or not
a working prototype(s) is in existence. Indicate if completion of development of
the product would require a material amount of the resources of the Company and
the estimated amount. If the Company is or is expected to be dependent upon one
or a limited number of suppliers for essential raw materials, energy or other
items, describe. Describe any major existing supply contracts.
The
Company will act as a holding company which will own 100% of the equity of local
operating companies as subsidiaries’ they either acquire or
develop The day-to-day operations of these
subsidiaries will be managed in those countries
where the group intends to have its solar power plants.
Euro
Solar Parks, Inc. will control the local operating companies (country
subsidiaries). This means the company will take care for the financial
controlling and reporting of the entire group, will monitor the day-to-day
operations of the local subsidiaries and will be responsible for investor and
public relations and fund raising.
At the
current development stage, Euro Solar Parks, Inc. will coordinate the evaluation
and assessment procedures for the development of such solar power plants. This
includes the research for and assessment of appropriate building land resources;
the monitoring of the necessary governmental licensing procedures; the
evaluation of appropriate engineers, hardware (PV systems) and
software.
The
company plans to commence with the operational work at the beginning of 2010,
which will include, first of all, the formation of the first local subsidiary,
the set-up of local office infrastructure and engagement of operational
staff. Furthermore, the company will drive the development of its
first solar power plant project through initializing the acquisition process of
necessary land resources and immediate start of the detailed planning work for a
first solar power plant with an approximate power output up to 6 megawatt peak
(MWp). Parallel to the ongoing development work, the company will
enter into negotiations with banks, institutional investors and government
investment funds to ensure a proper project financing, which is fundamental
precondition to start with the plant construction work.
Based on
our research on several comparable projects, we expect a total development time
frame of 9 to 12 months maximum until the first power plant will be ready to
start feeding the grid. For the period of the next 12 months, we estimate costs
from $100,000 to $150,000 to finance the start of our operational
work.
As of
today, we are not able, yet, to determine in detail the amount of cash and
capital requirements to finance the acquisition of land resources and the
construction of our first solar power plant, since acquisition and construction
cost depend on the current demand and supply situation in a specific target
market. The development of appropriate financing concepts will be part of the
early operational work.
Hardware
includes, first of all, the necessary PV-systems; software includes the
necessary controlling software to run a solar power plant.
It is
planned to start with operational work at the beginning of 2010.
40
b. Describe
the industry in which the Company is selling or expects to sell its products or
services and, where applicable, any recognized trends within that industry.
Describe that part of the industry and the geographic area in which the business
competes or will compete.
The
company works in the Energy Sector; especially in the field of renewable energy
with focus on solar energy, and the construction, operation and maintenance of
related solar power plants.
The
product that the company will sell is electricity,
produced through solar energy.
The
company focuses on emerging markets in Eastern Europe and South America that
guarantee, for a period of at least 25 years, growing demand for renewable
energy, attractive input charges and low maintenance cost.
Geographic
markets of major interest are: Rumania, Ukraine, and Bulgaria as well as Turkey
and Greek and several local markets in South-America.
c. Indicate
whether competition is or is expected to be by price, service, or other basis.
Indicate (by attached table if appropriate) the current or anticipated prices or
price ranges for the Company's products or services, or the formula for
determining prices, and how these prices compare with those of competitors'
products or services, including a description of any variations in product or
service features. Name the principal competitors that the Company has or expects
to have in its area of competition. Indicate the relative size and financial and
market strengths of the Company's competitors in the area of competition in
which the Company is or will be operating. State why the Company believes it can
effectively compete with these and other companies in its area of
competition.
The
production and sale of renewable energy is actively supported by the European
Union and its member countries through various means such as subsidies,
investment programs, tax incentives and guaranteed feed-in tariffs (aka input
charges).
Feed-in
tariffs are based on the obligation of the European countries to purchase
renewable energy at a price level that allows competing against traditional
electricity suppliers.
Within
the European Union, feed-in tariffs range from about EUR 0.20 to EUR 0.55 per
kWh. There is no common flat unit price throughout the entire European Union but
different input charges for each single member country, based on the individual
Renewable Energy Act of each European Union member country.
Feed-in
tariffs (or input charges) depend on a selection of different
parameters:
|
·
|
Geographical
market (each country defines its own feed-in tariff
structure)
|
|
·
|
Specific
size of a solar power plant (indicated by megawatt output (MW) and
kilowatt peak)
|
|
·
|
Specifically
average output volume (indicated by kilowatt per
hour)
|
|
·
|
Type
of solar power plant and interconnection to other power
plants
|
Other
factors that have a significant influence on feed-in tariffs and, therefore, on
the company’s revenue, cash flows and profits are:
|
·
|
Duration
of state-guaranteed feed-in tariffs (defined by each country; the range
goes from 20 to 30 years)
|
|
·
|
Rate
of price degression (usually state-guaranteed feed-in tariffs decrease
over the a certain time period by a certain percentage; such degression
degree can range between 3% and 6% per
year)
|
|
·
|
Inflation
(some European countries fix the annual feed-in tariff with the national
inflation rate)
|
All the
above mentioned factors and parameters finally have a significant influence of
the total revenue, cash flow and profit of each specific country company and,
therefore, on the consolidated financials of the entire Euro Solar Park
Group.
41
d. Describe
specifically the marketing strategies the Company is employing or will employ in
penetrating its market or in developing a new market. Set forth below the timing
and size of the results of this effort which will be necessary in order for the
Company to be profitable. Indicate how and by whom its products or services are
or will be marketed (such as by advertising, personal contact by sales
representatives, etc.), how its marketing structure operates or will operate and
the basis of its marketing approach, including any market studies. Name any
customers that account for, or based upon existing orders will account for a
major portion (20% or more) of the Company's sales. Describe any major existing
sales contracts.
Euro
Solar Parks, Inc. intends to develop solar power
plants for nation-wide general power networks. Target clients are national
utility corporations, owned either by a government body or private shareholders
who will purchase electricity directly from the company’s local solar power
plants. However, Euro Solar Parks does not intend to
develop and/or build insular plants, which are only used for supplying buildings
and smaller private communities and that are not connected to the nation-wide
network. Therefore, Euro Solar Parks, Inc. will only
handle B2B customers but not retail customers. The advantage of network
operation is that the energy will be consumed at any time, even if the producer
does not currently need the energy.
To
successfully enter the targeted markets, excellent relationships to senior
decision makers of governmental bodies and/or private utility companies are
crucial key success factors.
The
company is developing an external network of representatives and lobbyist who
are in charge of providing access to the relevant decision makers of
governmental bodies and private utility companies.
Currently,
Euro Solar Parks, Inc. does not have any customers and has not signed any sales
contracts so far.
e. State
the number of the Company's present employees and the number of employees it
anticipates it will have within the next 12 months. Also, indicate the number by
type of employee (i.e., clerical, operations, administrative, etc.) the Company
will use, whether or not any of them are subject to collective bargaining
agreements and the expiration date of any collective bargaining agreement(s). If
the Company's employees are on strike, or have been in the past three years, or
are threatening to strike, describe the dispute. Indicate any supplemental
benefits or incentive arrangements the Company has or will have with its
employees.
As of
today, the company does not have any full time or part time employees. It is
planned that the operational staff will be employed through the company’s
subsidiaries. The business plan foresees that the company will start its
operational business in early 2010. Thus, the company expects to hire local
staff in 2010.
The
amount of employees depend on the amount of solar power plants, a specific
country company will operate in the future. The typical staffing for one company
managing one solar power plant will include:
General
Manager (aka: County
Manager): 1
Accounting,
Finance &
Controlling: 2
Development
& Operations
Engineers:
1 to 3
Marketing
& Sales, Customer
Relationship: 1
Assistants
& General
Clerks:
1 to 3
Range
/ total amount of employees expected: 6 to
10
f. Describe
generally the principal properties (such as real estate, plant and equipment,
patents, etc.) that the Company owns, indicating also what properties it leases
and a summary of the terms under those leases, including the amount of payments,
expiration dates and the terms of any renewal options. Indicate what properties
the Company intends to acquire in the immediate future, the cost of such
acquisitions and the sources of financing it expects to use in obtaining these
properties, whether by purchase, lease or otherwise.
The
company does not own any kind of properties, real estate, plant and equipment,
patents, etc. so far. It is not planned that the company will acquire and own
properties, real estate, plant and equipment, patents, etc.
42
The
business plan foresees that any kind of real estate properties, plant and
equipment will be acquired, hold and managed by the company’s local
subsidiaries.
In the
field of intellectual properties (“IP”) it might be possible, that Euro Solar
Parks, Inc. acquires rights, claims and/or patents in the future. Currently,
there are no concrete intentions to do so.
g. Indicate
the extent to which the Company's operations depend or are expected to depend
upon patents, copyrights, trade secrets, know-how or other proprietary
information and the steps undertaken to secure and protect this intellectual
property, including any use of confidentiality agreements, covenants
-not-to-compete and the like. Summarize the principal terms and expiration dates
of any significant license agreements. Indicate the amounts expended by the
Company for research and development during the last fiscal year, the amount
expected to be spent this year and what percentage of revenues research and
development expenditures were for the last fiscal year.
The
business activity of Euro Solar Parks, Inc. does not depend directly on any kind
of patents, copyright, trade secrets etc.
Special
knowledge and expertise is required for all the topics and tasks regarding the
construction and operation of the planned solar power plants. This knowledge and
expertise may be acquired by hiring appropriate employees and/or engaging
appropriate advisors and engineering firms.
Critical
topics are the evaluation, selection and acquisition of the necessary
photovoltaic systems (PV Systems or PV Modules including maintenance
agreements). PV systems need to meet the geographical and meteorological
preconditions, needs and requirements of a specific geographical target market.
The selection of a PV system that meets exactly the requirements of a specific
geographical target market is essential for the ability of a solar power plant,
to produce efficient and profitable.
From this
point of view, Euro Solar Parks, Inc. mainly depends
on the knowledge and expertise of potential suppliers of PV
systems.
h. If
the Company's business, products, or properties are subject to material
regulation (including environmental regulation) by federal, state or local
governmental agencies, indicate the nature and extent of regulation and its
effects or potential effects upon the Company.
There are
three major fields where important regulations are expected:
a) Building
land: Land resources usually have to be licensed for
industrial / commercial purpose. It is furthermore expected, that land
resources, which shall be used for the construction and operation of solar power
plants, need additional extra licenses. The licensing procedure may depend from
local procedures and must be evaluated according to the markets where Euro Solar
Parks, Inc. intends to enter.
b) Energy
supply: Solar power plants usually need special
operation licenses, issued by governmental energy agencies. These licenses
include the approval to produce electricity and the approval to connect with and
feed national and/or local power networks. The corresponding application
procedures vary from country to country and depend on the current policies of
the targeted country markets.
c) Official acceptance as an energy
supplier with the right for state-guaranteed feeding prices (aka “Input
Charges”): The acceptance and approval as an official
energy supplier goes along with the issuance of operation licenses, which
qualify a utility company to feed national and/or local power networks with
solar electricity. This acceptance is an essential pre-condition to sell solar
electricity at prices, which are guaranteed by the government and supported by
national and/or supra-national subsidies.
Without
the necessary licenses, approvals and authorizations, the company will not be
able to run its business as planned, and therefore will not be able to generate
revenues and profits.
i. State
the names of any subsidiaries of the Company, their business purposes and
ownership, and indicate which are included in the Financial Statements attached
hereto. If not included, or if included but not consolidated, please
explain.
The
company has no subsidiaries so far.
43
j. Summarize
the material events in the development of the Company (including any material
mergers or acquisitions) during the past five years, or for whatever lesser
period the Company has been in existence. Discuss any pending or anticipated
mergers, acquisitions, spin-offs or recapitalizations. If the Company has
recently undergone a stock split, stock dividend or recapitalization in
anticipation of this offering, describe.
There
have not been any M&A, yet, and are no pending M&A, acquisitions,
spin-offs or recapitalizations so far. There has not been any kind of stock
split, stock dividend or dividend or recapitalization in anticipation of this
offering.
It is
planned to incorporate local country subsidiaries in the future. These local
country subsidiaries may be directly incorporated or acquired through direct
purchase; the necessary procedure and execution depend on the starting situation
when deciding to enter a specific geographic market. However, the necessary
evaluations are ongoing but no acquisition has been executed so
far.
RESULTS
OF OPERATIONS FOR THE PERIOD ENDED SEPTEMBER 30, 2009
LIQUIDITY
We have
current assets at September 30, 2009 of $62,787, including cash of $56,519. We
will be reliant upon shareholder loans, private placements or public offerings
of equity to fund any kind of operations. We have secured no sources of loans.
We had no cash flow or revenues during the year ended December 31,
2008.
For the
period of the next 12 months, we estimate cash needs between $100,000 and
$150,000 to finance the start of our operational work, including the formation
of our first local subsidiary, the set-up of local office infrastructure and
operational staff as well as for some initial pre-development work. Further cash
will be needed for the acquisition of land resources and the financing of
licensing procedures and fund raising activities.
As of
today, we are not able, yet, to determine in detail the amount of cash and
capital requirements to finance the acquisition of land resources and the
construction of our first solar power plant, since acquisition and construction
cost depend on the current demand and supply situation in a specific target
market. The development of appropriate financing concepts will be part of the
early operational work.
SHORT
TERM
On a
short-term basis, we have generated no revenues to cover
operations. However, we will have insufficient revenue to satisfy
current and recurring liabilities as we continue to build the business. For
short term needs we will be dependent on receipt, if any, of public offering or
private placement proceeds.
Our
assets consist of a checking account with a balance of $56,519, a stock
subscription receivable of $4,535 and prepaid expenses of $1,733 as of September
30, 2009.
Our total
liabilities are $19,265 as of September 30, 2009. Subsequently, we
are incurring significant liabilities in connection with our registration
statement on Form S-1.
The
following table sets forth an estimate of the costs and expenses payable by the
registrant in connection with the issuance and distribution of the common stock
being registered.
SEC
registration fee
|
$ | 37 | ||
Blue
Sky Expense
|
250 | |||
Legal
fees and expenses
|
50,000 | |||
Accountants’
fees and expenses
|
10,000 | |||
|
||||
Total
|
$ | 60,287 |
All
amounts except the SEC registration fee are estimated. All of the
expenses set forth above are being paid by the Company.
CAPITAL
RESOURCES
We have
only common stock as our capital resource.
As we
continue to build markets for ESP services and programs, substantial capital
will be needed to pay for sales and marketing, website development, equipment
and service, plus usual start up and normal operating costs.
NEED
FOR ADDITIONAL FINANCING
We do not
have capital sufficient to meet our expected cash requirements; therefore, we
will have to seek loans or equity placements.
No
commitments to provide additional funds have been made by our management or
other stockholders. Accordingly, there can be no assurance that any additional
funds will be available to us to allow it to cover our expenses as they may be
incurred.
44
We will
need additional capital to support our proposed future development. We have no
revenues at this time. We have no committed source for additional funding. No
representation is made that any funds will be available when needed. In the
event funds cannot be raised when needed, we may not be able to carry out our
business plan, may never achieve sales or income, and could fail in business as
a result of these uncertainties.
LIMITED
FINANCING
We may
borrow money to finance our future operations. Any such borrowing will increase
the risk of loss to the investor in the event we are unsuccessful in repaying
such loans.
We may
issue additional shares to finance our future operations, although the Company
does not currently contemplate doing so. Any such issuance will reduce the
control of previous investors and may result in substantial additional dilution
to investors purchasing shares from this offering.
OFF-BALANCE
SHEET ARRANGEMENTS
The
Company maintains no off-balance sheet arrangements.
GOING
CONCERN
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern, which contemplates the realization of its
assets and the liquidation of its liabilities in the normal course of business.
However, the Company has no revenues and is in its development stage, and
currently lacks the capital to pursue its business plan. This raises substantial
doubt about the Company’s ability to continue as a going concern. The financial
statements do not include any adjustments that might result from this
uncertainty.
DESCRIBE
ANY UNUSUAL OR INFREQUENT EVENTS OR TRANSACTIONS OR ANY SIGNIFICANT ECONOMIC
CHANGES THAT MATERIALLY AFFECTED THE AMOUNT OF REPORTED INCOME FROM CONTINUING
OPERATIONS AND, IN EACH CASE, INDICATE THE EXTENT TO WHICH INCOME WAS SO
AFFECTED. IN ADDITION, DESCRIBE ANY OTHER SIGNIFICANT COMPONENTS OF REVENUES OR
EXPENSES THAT, IN THE REGISTRANT'S JUDGMENT, SHOULD BE DESCRIBED IN ORDER TO
UNDERSTAND THE REGISTRANT'S RESULTS OF OPERATIONS.
We have
yet to initiate operations and know of no unusual or infrequent events or
transactions or any significant economic changes that would materially affected
the amount of reported income from future operations
DESCRIBE
ANY KNOWN TRENDS OR UNCERTAINTIES THAT HAVE HAD OR THAT THE REGISTRANT
REASONABLY EXPECTS WILL HAVE A MATERIAL FAVORABLE OR UNFAVORABLE IMPACT ON NET
SALES OR REVENUES OR INCOME FROM CONTINUING OPERATIONS.
At this
time we know of no specific trends or uncertainties that would materially impact
our current business plan.
IF
THE REGISTRANT KNOWS OF EVENTS THAT WILL CAUSE A MATERIAL CHANGE IN THE
RELATIONSHIP BETWEEN COSTS AND REVENUES (SUCH AS KNOWN FUTURE INCREASES IN COSTS
OF LABOR OR MATERIALS OR PRICE INCREASES OR INVENTORY ADJUSTMENTS), THE CHANGE
IN THE RELATIONSHIP SHALL BE DISCLOSED.
At this
time we know of no specific events or uncertainties that would materially impact
our current business plan, we have had no past or current
operations.
TO
THE EXTENT THAT THE FINANCIAL STATEMENTS DISCLOSE MATERIAL INCREASES IN NET
SALES OR REVENUES, PROVIDE A NARRATIVE DISCUSSION OF THE EXTENT TO WHICH SUCH
INCREASES ARE ATTRIBUTABLE TO INCREASES IN PRICES OR TO INCREASES IN THE VOLUME
OR AMOUNT OF GOODS OR SERVICES BEING SOLD OR TO THE INTRODUCTION OF NEW SERVICES
OR SERVICES.
There
have been no material changes in net sales or revenues.
45
FOR
THE TWO MOST RECENT FISCAL YEARS OF THE REGISTRANT, OR FOR THOSE FISCAL YEARS IN
WHICH THE REGISTRANT HAS BEEN ENGAGED IN BUSINESS, WHICHEVER PERIOD IS SHORTEST,
DISCUSS THE IMPACT OF INFLATION AND CHANGING PRICES ON THE REGISTRANT'S NET
SALES AND REVENUES AND ON INCOME FROM CONTINUING OPERATIONS.
The
Company is a start up and has had no operations. However, one can only assume as
the company grows it would need to make necessary adjustments to higher prices
and future market conditions as would all of its competitors to stay competitive
in the market place.
CRITICAL
ACCOUNTING POLICIES
BASIS OF
ACCOUNTING
The
statements were prepared following generally accepted accounting principles of
the United States of America consistently applied.
BASIC
EARNINGS PER SHARE
The basic
earnings (loss) per share is calculated by dividing the Company’s net income
available to common shareholders by the weighted average number of common shares
during the year. The diluted earnings (loss) per share is calculated by dividing
the Company’s net income (loss) available to common shareholders by the diluted
weighted average number of shares outstanding during the year. The diluted
weighted average number of shares outstanding is the basic weighted number of
shares adjusted for any potentially dilutive debt or equity.
CASH
EQUIVALENTS
The
Company considers all highly liquid investments purchased with an original
maturity of three months or less to be cash equivalents.
DIVIDENDS
The
Company has not adopted any policy regarding payment of dividends. No dividends
have been paid.
USE OF
ESTIMATES AND ASSUMPTIONS
The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those
estimates.
REVENUE
AND COST RECOGNITION
We
recognize revenue at the time the services and products are paid for. We follow
EITF Issue 00-10, “Accounting for Shipping and Handling Fees and Costs” (Issue
00-10). Issue 00-10 requires that all amounts billed to customers related to
shipping and handling should be classified as revenues. Our service costs
include amounts for shipping and handling, therefore, we charge our customers
shipping and handling fees at the time the services are shipped or when services
are performed. The cost of shipping services to the customer is recognized at
the time the services are shipped to the customer and our policy is to classify
them as shipping expenses. The cost of shipping services to the customer is
classified as shipping expense.
Staff
Accounting Bulletin No. 101, Revenue Recognition in Financial Statements (SAB
101) and Staff Accounting Bulletin No. 104, Revenue Recognition, corrected copy
(SAB 104) address certain criteria for revenue recognition. SAB 101 and SAB 104
outline the criteria that must be met to recognize revenue and provides guidance
for disclosures related to revenue recognition policies. Our revenue recognition
policies comply with the guidance contained in SABs 101 and 104.
INCOME
TAXES
At
September 30, 2009, the Company had no income.
46
NEW
ACCOUNTING PRONOUNCEMENTS
Below is
a listing of the most recent Statement of Financial Accounting Standards (SFAS)
SFAS 155, 157, and 158 and their effect on the Company.
Statement
No. 158, "Employers' Accounting for Defined Benefit Pension and Other
Postretirement Plans" – an amendment of FASB Statements No. 87, 88, 106, and
123R. This Statement improves financial reporting by requiring an employer to
recognize the over funded or under funded status of a defined benefit
postretirement plan (other than a multiemployer plan) as an asset or liability
in its statement of financial position and to recognize changes in that funded
status in the year in which the changes occur through comprehensive income of a
business entity or changes in unrestricted net assets of a not-for-profit
organization.
Statement
No. 157, "Fair Value Measurements". This Statement defines fair value,
establishes a framework for measuring fair value in generally accepted
accounting principles (GAAP), and expands disclosures about fair value
measurements. This Statement applies under other accounting pronouncements that
require or permit fair value measurements.
Statement
No. 155, Accounting for Certain Hybrid Financial Instruments – an amendment of
FASB Statement No. 133 and 140. This Statement amends FASB Statements No.
133, Accounting for Derivative
Instruments and Hedging Activities, and No. 140, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of
Liabilities.
The
adoption of these new Statements is not expected to have a material effect on
the Company’s current financial position, results or operations, or cash
flows.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
None
OFFICERS AND KEY PERSONNEL OF THE
COMPANY
The
address of each executive officer and director is c/o the Company:
Euro
Solar Parks, Inc.
81
Elmwood Avenue
Ho-ho-Kus,
NJ 07423, USA
DIRECTORS
OF THE COMPANY
Number of
Directors: 1
Directors
are elected annually.
Currently,
Mr. Dimitrios Argyros serves as the Company’s Chairman and CEO. In this role, he
is responsible for the global business development and investment strategy of
Euro Solar Parks, Inc. Mr. Argyros has been in the finance and investment
industry for more than 17 years. During this time he accumulated broad
experience in multinational investment and development projects. Thanks to his
Greek roots, he has been able to build a global network of senior executives
throughout the US American and European investment community.
The
following table shows an overview of Mr. Argyros’ work experience and
educational background:
Date:
|
Dec-2008
to Aug-2009
|
Company:
|
Brookestone
Securities, Inc.
|
Position:
|
Investment
Manager Institutional Sales
|
Tasks:
|
Marketing
of investment products (PIPE, Equity, Special Purpose Financing);
turnaround management; financial
analysis.
|
47
Date:
|
Sep-2006
to Nov-2008
|
Company:
|
BDO
Seidman Consulting Group
|
Position:
|
Senior
Quality Control Specialist
(Contractor)
|
Tasks:
|
Quality
assurance; AML Surveillance; development and implementation of QA
processes; compliance, monitoring and controlling
processes.
|
Date:
|
Nov-2004
to Oct-2007
|
Company:
|
Madison
Consulting Group
|
Position:
|
Project
Consultant Investment Banking
|
Tasks:
|
Various
investment banking consulting projects for UBS AG and Deutsche Bank AG in
the fields of AML/KYC analyst department, gap analysis, case management,
risk management, management of Institutional & Wealth Accounts located
in High Risk Sensitive Countries (such as Hedge Funds, Banks, Limited
Partnerships, Government Entities and
Trusts).
|
Education:
|
MBA
in International Finance (Jan-1993); Bachelor of Science in Finance
(May-1990); Securities / Registered Representative Series #7 and
#63.
|
Languages:
|
English,
Greek (bilingual; fluent reading and writing; accredited official
translator for AML/Bank Secrecy
purposes).
|
LIST
OF OUTSIDE/INDEPENDENT DIRECTORS
None
HAVE
ANY OF THE OFFICERS OR DIRECTORS EVER WORKED FOR OR MANAGED A COMPANY IN THE
SAME BUSINESS AS THE COMPANY?
No
IF
ANY OF THE OFFICERS, DIRECTORS OR OTHER KEY PERSONNEL HAVE EVER WORKED FOR OR
MANAGED A COMPANY IN THE SAME BUSINESS OR INDUSTRY AS THE COMPANY OR IN A
RELATED BUSINESS OR INDUSTRY, DESCRIBE WHAT PRECAUTIONS, IF ANY, (INCLUDING THE
OBTAINING OF RELEASES OR CONSENTS FROM PRIOR EMPLOYERS) HAVE BEEN TAKEN TO
PRECLUDE CLAIMS BY PRIOR EMPLOYERS FOR CONVERSION OR THEFT OF TRADE SECRETS,
KNOW-HOW OR OTHER PROPRIETARY INFORMATION.
Not
applicable. There have been no precautions taken.
IF
THE COMPANY HAS NEVER CONDUCTED OPERATIONS OR IS OTHERWISE IN THE DEVELOPMENT
STAGE, INDICATE WHETHER ANY OF THE OFFICERS OR DIRECTORS HAS EVER MANAGED ANY
OTHER COMPANY IN THE START-UP OR DEVELOPMENT STAGE AND DESCRIBE THE
CIRCUMSTANCES, INCLUDING RELEVANT DATES.
Mr.
Argyros is a very well experienced Senior Management Consultant who brings along
a work experience in managing complex business development projects of more than
15 years. Based on this professional background, Mr. Argyros has been appraised
as the ideal Senior Executive to build up and develop the international business
of Euro Solar Parks, Inc.; especially in High Risk Sensitive Countries, such as
Eastern Europe.
Furthermore,
Mr. Argyros brings along the necessary experience in the fields of investment
management and financial analysis to ensure a proper assessment, valuation and
selection of the various solar power plant investment programs, that the company
has got in its project pipeline.
48
IF
ANY OF THE COMPANY'S KEY PERSONNEL ARE NOT EMPLOYEES BUT ARE CONSULTANTS OR
OTHER INDEPENDENT CONTRACTORS, STATE THE DETAILS OF THEIR ENGAGEMENT BY THE
COMPANY.
Mr.
Argyros has been engaged on a consulting agreement basis. It is foreseen, that
the consulting agreement with Mr. Argyros will be transformed into a regular
employment agreement, as soon as the company, respectively its local
subsidiaries, start with the regular operational work. This change is expected
for early 2010. This agreement and an
amendment to it is included as an exhibit.
IF
THE COMPANY HAS KEY MAN LIFE INSURANCE POLICIES ON ANY OF ITS OFFICERS,
DIRECTORS OR KEY PERSONNEL, EXPLAIN, INCLUDING THE NAMES OF THE PERSONS INSURED,
THE AMOUNT OF INSURANCE, WHETHER THE INSURANCE PROCEEDS ARE PAYABLE TO THE
COMPANY AND WHETHER THERE ARE ARRANGEMENTS THAT REQUIRE THE PROCEEDS TO BE USED
TO REDEEM SECURITIES OR PAY BENEFITS TO THE ESTATE OF THE INSURED PERSON OR A
SURVIVING SPOUSE.
None at
this time
IF
A PETITION UNDER THE BANKRUPTCY ACT OR ANY STATE INSOLVENCY LAW WAS FILED BY OR
AGAINST THE COMPANY OR ITS OFFICERS, DIRECTORS OR OTHER KEY PERSONNEL, OR A
RECEIVER, FISCAL AGENT OR SIMILAR OFFICER WAS APPOINTED BY A COURT FOR THE
BUSINESS OR PROPERTY OF ANY SUCH PERSONS, OR ANY PARTNERSHIP IN WHICH ANY OF
SUCH PERSONS WAS A GENERAL PARTNER AT OR WITHIN THE PAST FIVE YEARS, OR ANY
CORPORATION OR BUSINESS ASSOCIATION OF WHICH ANY SUCH PERSON WAS AN EXECUTIVE
OFFICER AT OR WITHIN THE PAST FIVE YEARS, SET FORTH BELOW THE NAME OF SUCH
PERSONS, AND THE NATURE AND DATE OF SUCH ACTIONS.
No
petition under the bankruptcy act or any state insolvency law has been filed by
or against the company or its officers, directors or other key personnel. No
receiver, fiscal agent or similar officer has been appointed by a court for the
business or property of any such persons, or any partnership in which any of
such persons was a general partner at or within the past five years, or any
corporation or business association of which any such person was an executive
officer at or within the past five years.
SECTION
16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section
16(a) of the Securities Exchange Act of 1934 requires our directors and
executive officers, and persons who own more than ten percent of our common
stock, to file with the Securities and Exchange Commission initial reports of
ownership and reports of change of ownership of our common stock. Officers,
directors and greater than ten percent stockholders are required by SEC
regulation to furnish us with copies of all Section 16(a) forms they
file.
We intend
to ensure to the best of our ability that all Section 16(a) filing requirements
applicable to our officers, directors and greater than ten percent beneficial
owners are complied with in a timely fashion.
EXECUTIVE COMPENSATION
SUMMARY
COMPENSATION TABLE
|
||||||||||||
Annual
Compensation
|
Long
Term Compensation
|
|||||||||||
Awards
|
Pay-outs
|
|||||||||||
Name
and Principal
Position
|
Year(1)
|
Salary
|
Bonus
|
Other
|
Securities
Underlying
Options
/
SARs
Granted
|
Restricted
Shares
or
Restricted
Share
Units
|
LTIP
Pay-outs
|
All
Other
|
||||
Dimitrios
Argyros, Director
|
2009
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
We were
incorporated on October 21, 2008.
49
CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS
(See
table in section titled “SELLING SHAREHOLDERS” starting
on page 18.)
SUMMARY
COMPENSATION
At this
time there is no compensation being offered to any of the
Officers/Directors
STOCK
AND OPTION AWARDS
There
have been no stock options or awards other than the original “founders” stock,
which was issued for services to the founders.
DIRECTORS’
COMPENSATION
Directors
are not compensated.
EMPLOYMENT
CONTRACTS AND OFFICERS’ COMPENSATION
There are
no employment agreements
INCENTIVE
STOCK OPTION PLAN AND INCENTIVE STOCK OPTION AGREEMENT
None at
this time
LONG-TERM
INCENTIVE PLAN (“LTIP”) AWARDS
None at
this time
50
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
The
following table sets forth, as of the date of this Prospectus, the total number
of shares owned beneficially by our directors, officers and key employees,
individually and as a group, and the present owners of 5% or more of our total
outstanding shares. The officers and directors currently own 6,000 common
shares. The table also reflects what the percentage of ownership will be
assuming completion of the sale of all shares in this offering, which we cannot
guarantee. The stockholders listed below have direct ownership of their shares
and possess sole voting and dispositive power with respect to the
shares.
Beneficial
Owner Officer/Directors1)
|
Percent
of Voting Shares Owned2)
|
Number
of Common Issued Shares
|
||
Total
Shares Outstanding
|
4,145,800
|
|||
Total
Shares Authorized
|
100,000,000
|
|||
Total
Shares owned by Officers and Directors
|
6,000
|
|||
Agromerkur
AG (Hans Wadsack)
|
|
69.9%
|
2,900,000
|
The
address of each executive officer and director is c/o the Company:
Euro
Solar Parks, Inc.
81
Elmwood Avenue
Ho-ho-Kus,
NJ 07423, USA
1)
|
As
used in this table, “beneficial ownership” means the sole or shared power
to vote, or to direct the voting of, a security, or the sole or share
investment power with respect to a security (i.e., the power to dispose
of, or to direct the disposition of, a
security).
|
2)
|
Percent
of voting shares owned
|
Pursuant
to the Articles of Incorporation and By-Laws of the corporation, we may
indemnify an officer or director who is made a party to any proceeding,
including a law suit, because of his position, if he acted in good faith and in
a manner he reasonably believed to be in our best interest. In
certain cases, we may advance expenses incurred in defending any such
proceeding. To the extent that the officer or director is successful on the
merits in any such proceeding as to which such person is to be indemnified, we
must indemnify him against all expenses incurred, including attorney’s fees.
With respect to a derivative action, indemnity may be made only for expenses
actually and reasonably incurred in defending the proceeding, and if the officer
or director is judged liable, only by a court order. The indemnification is
intended to be to the fullest extent permitted by the laws of the State of
Nevada.
In so far
as indemnification for liabilities arising under the Securities Act may be
permitted to our directors, officers and controlling persons pursuant to the
provisions above, or otherwise, we have been advised that in the opinion of the
Securities and Exchange Commission, such indemnification is against public
policy as expressed in the Securities Act, and is, therefore,
unenforceable.
In the
event that a claim for indemnification against such liabilities, other than the
payment by us of expenses incurred or paid by one of our directors, officers, or
controlling persons in the successful defense of any action, suit or proceeding,
is asserted by one of our directors, officers, or controlling person in
connection with the securities being registered, we will, unless in the opinion
of our counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such indemnification is
against public policy as expressed in the Securities Act, and we will be
governed by the final adjudication of such issue.
AVAILABLE INFORMATION
We have
filed a registration statement on Form S-1, of which this Prospectus is a part,
with the U.S. Securities and Exchange Commission. Upon completion of the
registration, we will be subject to the informational requirements of the
Exchange Act and, in accordance therewith, will file all requisite reports, such
as Forms 10-K, 10-Q, and 8-K, proxy statements, under Section 14 of the Exchange
Act and other information with the Commission. Such reports, proxy statements,
this registration statement and other information, may be inspected and copied
at the public reference facilities maintained by the Commission at 100 F Street
NE, Washington, D.C. 20549. Copies of all materials may be obtained from the
Public Reference Section of the Commission’s Washington, D.C. office at
prescribed rates. You may obtain information regarding the operation of the
Public Reference Room by calling the SEC at 1-800-SEC-0330. The Commission also
maintains a Web site that contains reports, proxy and information statements and
other information regarding registrants that file electronically with the
Commission at http://www.sec.gov.
51
Euro
Solar Parks, Inc.
441,800
SHARES OF COMMON STOCK
PROSPECTUS
YOU
SHOULD RELY ONLY ON THE INFORMATION CONTAINED IN THIS DOCUMENT OR THAT WE HAVE
REFERRED YOU TO. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE YOU WITH INFORMATION
THAT IS DIFFERENT. THIS PROSPECTUS IS NOT AN OFFER TO SELL COMMON STOCK AND IS
NOT SOLICITING AN OFFER TO BUY COMMON STOCK IN ANY STATE WHERE THE OFFER OR SALE
IS NOT PERMITTED.
Until
_____________, all dealers that effect transactions in these securities whether
or not participating in this offering may be required to deliver a prospectus.
This is in addition to the dealer’s obligation to deliver a prospectus when
acting as underwriters and with respect to their unsold allotments or
subscriptions.
The
Date of This Prospectus is_____, 2010
52
PART
II – INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13 OTHER EXPENSES OF ISSUANCE AND
DISTRIBUTION
The
following table sets forth an estimate of the costs and expenses, other than the
underwriting discounts and commissions, payable by the registrant in connection
with the issuance and distribution of the common stock being
registered:
SEC
Registration Fee
|
$ | 37 | ||
Blue
Sky Expenses
|
$ | 250 | ||
Legal
Fees and Expenses
|
$ | 50,000 | ||
Accountants’
Fees and Expenses
|
$ | 10,000 | ||
|
||||
Total
|
$ | 60,287 |
All
amounts except the SEC registration fee are estimated. All of the expenses set
forth above are being paid by us.
ITEM 14 INDEMNIFICATION OF DIRECTORS AND
OFFICERS
Article 4
of the Articles of Incorporation (as amended) address indemnification of
Directors and Officers and provides for the following:
“No
director of the corporation will be liable to the corporation or its
shareholders for monetary damages for an act or omission in the director's
capacity as a director, except as provided by the Code; and, the corporation
will indemnify its directors and officers to the fullest extent permitted by the
Code and may, of and to the extent authorized by the board of directors,
indemnify any other person whom it has the power to indemnify against liability,
reasonable expense, or any other matter whatever; and, the corporation may at
the discretion of the board of directors purchase and maintain insurance on behalf of
the corporation and any person whom it has the power to indemnify pursuant to
law, the certificate of formation, or these bylaws, or otherwise.”
53
ITEM
15 RECENT SALES OF UNREGISTERED SECURITIES
The
Company sold through a Regulation D Rule 506 offering a total of 4,145,800
shares of common stock to 44 investors, at a @ weighted average price of USD
0.025.
The
following sets forth the identity of the class of persons to whom we sold these
shares and the amount of shares for each shareholder.
#
|
Shareholder
|
Payment
Contribution
|
Offering
Period
|
||
#
of Stocks
|
Price
/ Share
|
Total
USD
|
From
|
||
1.
|
Agromerkur
AG
|
2,900,000
|
0.003
|
8,700
|
01-Jan-09
|
2.
|
Checkmate
Holdings Inc.
|
8,000
|
0.010
|
80
|
01-Mar-09
|
3.
|
La
Rumba S.A.
|
8,000
|
0.010
|
80
|
01-Mar-09
|
4.
|
Feng
Shui International Co., Ltd.
|
10,000
|
0.010
|
100
|
01-Mar-09
|
5.
|
Apus
Holdings Inc.
|
10,000
|
0.010
|
100
|
01-Mar-09
|
6.
|
Green
Coast Partners Ltd.
|
12,000
|
0.010
|
120
|
01-Mar-09
|
7.
|
Centrino
Management Co., Ltd.
|
15,000
|
0.010
|
150
|
01-Mar-09
|
8.
|
Celestial
Global Holding Inc.
|
20,000
|
0.010
|
200
|
01-Mar-09
|
9.
|
United
Equity Capital AG
|
142,100
|
0.050
|
7,105
|
22-Apr-09
|
10.
|
Nali
Finance Corp.
|
149,000
|
0.070
|
10,430
|
27-Apr-09
|
11.
|
Una
Finance Ltd.
|
156,400
|
0.070
|
10,948
|
27-Apr-09
|
12.
|
Valentino
Marketing Ltd.
|
164,000
|
0.070
|
11,480
|
27-Apr-09
|
13.
|
Horst
Invest Corp.
|
172,000
|
0.070
|
12,040
|
27-Apr-09
|
14.
|
Frostilos
Business Corp.
|
180,500
|
0.100
|
18,050
|
06-May-09
|
15.
|
Partner
Capital Investment Ltd.
|
190,000
|
0.100
|
19,000
|
06-May-09
|
16.
|
Dimitrios
Argyros
|
6,000
|
1.000
|
1,005
|
14-May-09
|
17.
|
Izrael
Cohen
|
100
|
1.000
|
100
|
14-May-09
|
18.
|
Stamatios
Catechis
|
100
|
1.000
|
100
|
14-May-09
|
19.
|
Olga
Humblias
|
100
|
1.000
|
100
|
14-May-09
|
20.
|
Sven
Kriegbaum
|
100
|
1.000
|
100
|
14-May-09
|
21.
|
April
A. Humblias
|
100
|
1.000
|
100
|
14-May-09
|
22.
|
Mia
L. Catechis
|
100
|
1.000
|
100
|
14-May-09
|
23.
|
Jan
Kriegbaum
|
100
|
1.000
|
100
|
14-May-09
|
24.
|
Phillip
Forman
|
100
|
1.000
|
100
|
14-May-09
|
25.
|
Mark
Kaspiev
|
100
|
1.000
|
100
|
14-May-09
|
26.
|
Themistoclis
Catechis
|
100
|
1.000
|
100
|
14-May-09
|
27.
|
Leaddog
Capital Partners, Inc.
|
100
|
1.000
|
100
|
14-May-09
|
28.
|
Leaddog
Capital Markets, LLC
|
100
|
1.000
|
100
|
14-May-09
|
29.
|
Antonio
Suffren
|
100
|
1.000
|
100
|
14-May-09
|
30.
|
Julia
Schroeder
|
100
|
1.000
|
100
|
14-May-09
|
31.
|
Marek
Schroeder
|
100
|
1.000
|
100
|
14-May-09
|
32.
|
Marisa
Schroeder
|
100
|
1.000
|
100
|
14-May-09
|
33.
|
Bennet
Schroeder
|
100
|
1.000
|
100
|
14-May-09
|
34.
|
Neil
Mohinani
|
100
|
1.000
|
100
|
14-May-09
|
35.
|
Vasilios
Vordonis
|
100
|
1.000
|
100
|
14-May-09
|
36.
|
Leano
Docal
|
100
|
1.000
|
100
|
14-May-09
|
37.
|
Loris
Docal
|
100
|
1.000
|
100
|
14-May-09
|
38.
|
Marcos
Docal
|
100
|
1.000
|
100
|
14-May-09
|
39.
|
Birthe
Docal
|
100
|
1.000
|
100
|
14-May-09
|
40.
|
Thorsten
Foerster
|
100
|
1.000
|
100
|
14-May-09
|
41.
|
Kelly
T. Hickel
|
100
|
1.000
|
100
|
14-May-09
|
42.
|
Rodney
P. Leibowitz
|
100
|
1.000
|
100
|
14-May-09
|
43.
|
Dirk
Schewe
|
100
|
1.000
|
100
|
14-May-09
|
44.
|
Mathias
Drews
|
100
|
1.000
|
100
|
14-May-09
|
-
|
Total
|
4,145,800
|
-
|
102,388
|
-
|
54
ITEM
16 EXHIBITS
The
following exhibits are included with this registration statement:
Exhibit Number
|
Name/Identification of
Exhibit
|
3.1
|
Articles
of Incorporation
|
3.2
|
Bylaws
|
5.1
|
Opinion
of Novi & Wilkin, Esq. Attorneys at Law
|
10.1
|
Argyros
Consulting Agreement
|
10.2
|
Argyros
Consulting Agreement-Amended
|
10.3
|
Lease
Agreement
|
23.1
|
Consent
of Independent Auditor
|
23.2
|
Consent
of Counsel (See Exhibit 5.1)
|
ITEM
17 UNDERTAKINGS
(A) The
undersigned Registrant hereby undertakes:
(1) To
file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
i. To
include any prospectus required by section 10(a)(3) of the Securities Act of
1933;
ii. To
reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the effective
registration statement.
iii. To
include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to
such information in the registration statement;
(2) That,
for the purpose of determining any liability under the Securities Act of 1933,
each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.
(3) To
remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.
(4) Not
applicable.
55
(5) Each
prospectus filed pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements relying on Rule 430B
or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be
part of and included in the registration statement as of the date it is first
used after effectiveness. Provided, however, that no statement made in a
registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement
will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such
document immediately prior to such date of first use.
(6) That,
for the purpose of determining liability of the registrant under the Securities
Act of 1933 to any purchaser in the initial distribution of the securities: The
undersigned registrant undertakes that in a primary offering of securities of
the undersigned registrant pursuant to this registration statement, regardless
of the underwriting method used to sell the securities to the purchaser, if the
securities are offered or sold to such purchaser by means of any of the
following communications, the undersigned registrant will be a seller to the
purchaser and will be considered to offer or sell such securities to such
purchaser:
i. Any
preliminary prospectus or prospectus of the undersigned registrant relating to
the offering required to be filed pursuant to Rule 424;
ii. Any
free writing prospectus relating to the offering prepared by or on behalf of the
undersigned registrant or used or referred to by the undersigned
registrant;
iii. The
portion of any other free writing prospectus relating to the offering containing
material information about the undersigned registrant or its securities provided
by or on behalf of the undersigned registrant; and
iv. Any
other communication that is an offer in the offering made by the undersigned
registrant to the purchaser.
56
SIGNATURES
In
accordance with the requirements of the Securities Act of 1933, the Registrant
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, in the City of Ho-Ho-Kus, NJ on February 1, 2010.
Euro Solar Parks, Inc.
|
(Registrant)
|
By: /s/
Dimitrios Argyros
|
Dimitrios
Argyros
|
Chairman
and CEO
|
In
accordance with the requirements of the Securities Act of 1933, this
Registration Statement was signed by the following persons in the capacities and
on the dates indicated.
Signature
|
Title
|
Date
|
/s/ Dimitrios Argyros
|
Chairman,
President, CEO and CFO
and Principal Accounting Officer
|
February
1, 2010
|
Dimitrios
Argyros
|
57