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| 8-K - 3Power Energy Group Inc. | v177408_8k.htm |
Prime
Sun Power Inc. Signs 100M Euros (USD 137M) Definitive Agreement for the Sale of
25 Megawatt Photovoltaic Power Plant in Italy
Transaction
with Major European Institutional Investor is First Sale under Terms of 100
Megawatt Frame Agreement Announced in February 2010
Mar. 9,
2010 (Business Wire) -- Prime Sun Power Inc. (OTCBB: PSPW), today announced that
the Company has signed a definitive agreement for the sale of a twenty-five
megawatt photovoltaic power plant in Italy. This is a major event for the
Company as it is expected to generate gross revenues of over 100 million Euros
in 2010. PSP receives interest for 12 million Euros of strategic investments in
the Company from module suppliers. The transaction is the first sale under the
terms of a signed frame agreement to sell 100 megawatt projects on a turnkey
grid-connected basis to an institutional investor.
The
Company currently has several engineering, procurement and construction (EPC)
contractors and photovoltaic array module suppliers bidding for the
construction, installation and connection of the power plant to the regional
electricity grid in Italy. Terms and conditions of the long-term debt by the
Company’s financing institution are expected to be finalized by the end of April
2010. Construction is targeted to begin in June 2010. The first electricity
sales from the photovoltaic plant projects under the Italian feed-in-tariff
regime are expected to commence during the fourth quarter of 2010.
Mr.
Olivier de Vergnies, Chief Executive Officer of the Company, stated, “We have
commenced the phase for monetization of our business model in the photovoltaic
sector. The success of signing our first 25 megawatt photovoltaic sales contract
not only exhibits the effectiveness of our strategy, but also demonstrates our
Company project development capabilities and delivery of value to our
shareholders. We intend to engage world leading EPC and module suppliers to
guarantee on-time project delivery and project-outsourcing in order to close
additional definitive sales agreements before the end of April
2010.”
The
Company is positioning itself as a clean energy utility company with an emphasis
on the development, construction and operation of its own and third party
utility-scale photovoltaic power plants. The Company is focusing on photovoltaic
solar power generation in Europe, particularly in Italy, Greece and
Turkey.
The
Company plans to develop, build and operate 500 megawatts of photovoltaic solar
power generation through the end of 2013 of which 150 megawatts are expected to
be acquired by third party investors. In addition to Company expectation of
proceeds from selected strategic financiers currently in negotiations with
Company management, the Company plans to use revenues generated from sales of
projects to third parties in the development and construction of its own power
plants. The Company strategy is to act as a consortium-leader with reputable
world-leading EPC and module suppliers to deliver all projects on a turnkey
basis. The Company aims to achieve a leading position in the provision of solar
energy.
For
further information please visit www.primesunpower.com
Forward-Looking
Statements
This
press release contains 'forward-looking statements' as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These statements are based
upon our current expectations and speak only as of the date hereof. These
forward-looking statements are based upon currently available competitive,
financial, and economic data and management's views and assumptions regarding
future events. Such forward-looking statements are inherently uncertain. Our
actual results may differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors and uncertainties.
Prime Sun Power Inc. cannot provide assurances that any prospective matters
described in the press release will be successfully completed or that Prime Sun
Power Inc. will realize the anticipated benefits of any transactions. Various
risk factors that may affect our business, results of operations and financial
condition are detailed from time to time in the Current Reports on Form 8-K and
other filings made by Prime Sun Power Inc. with the U.S. Securities &
Exchange Commission. Prime Sun Power Inc. undertakes no obligation to update
information contained in this release.