Acro Energy Will Acquire EE Solar

Acro Energy Technologies Corp. announced their signing of a letter of intent to purchase shares in Energy Efficiency Solar Inc., known as EE Solar. The solar equipment company which installs solar modules in residential areas, will acquire EE Solar shortly after signing the letter.

In the agreement, Acro will acquire every issued and/or outstanding stock share of EE Solar for a total purchasing cost of $1.95 million. The company will pay for the shares with a combination payment method of cash, bank promissory notes, Acro Energy stock, as well as assume the accumulated debt of EE Solar. EE Solar services customers in the U.S., and reported a total profit of $4.2 million for the 2008 fiscal year. 

Harry Fleming the CEO for Acro Energy told the press that the company was pleased to be acquiring EE Solar, and that their first move after the acquisition will be to conduct a review of the company as well as ascertain future prospects.

Fleming also said that the acquisition of EE Solar was a natural progression for the solar company that had been hoping to expand into the Southern California solar sector for some time. The acquisition will allow Acro Energy to expand into more solar ventures in Southern California with ease having been provided with an already established solar venture company.

The finalization of the purchase will be subject to several approvals, including further negotiations on developing a more definitive contract. Additionally Acro Energy will conduct a due diligence review prior to taking control of EE Solar’s outstanding shares. Additionally government consent and further contractual permits will have to be completed. Overall the company hopes to complete the transaction before the end of 2009.