13:30 | 09.03.2010
Prime Sun Power Inc. Signs 100M Euros (USD 137M) Definitive Agreement for the Sale of 25 Megawatt Photovoltaic Power Plant in Italy
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.
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