Reading the 8-K about the Sungevity reverse merge reveals some interesting behind the scenes on the transaction. Easterly, which is known as a SPAC, was created as a public vehicle to make merge with a private company to take it public. Instead of raising money in an IPO, the cash from Easterly ends up on the Sungevity balance sheet, in this case about $190million minus costs and fees. The Sungevity shareholders, including management, will own 58.8% of the new company and the employees will end up with 1.75million shares in the options pool, about 3% of the overall company. Sungevity’s financials are also released to some extent, revealing a GAAP net income loss of $128million in 2015 with 6,159 systems installed. Net loss is always tricky in solar because the equity invested into the projects is typically booked as a loss. The company takes a dig at its competitors, SolarCity/Sunrun/Vivint, for being asset heavy and rolling their own installation crews. Curious how the previous announcements of collaboration with Sunrun and Mosaic are being handled going forward. Feel free to read more in the full presentation here.
- Fortune: Solar Company Sungevity Is Going Public in an Interesting Way
- PV-Magazine: Inside Ingeteam’s acquisition of Bonfiglioli’s solar business
- CleanTechnica: SolarCity Explores The Impact Of Its 8 Million Installed Solar Panels
- Renewable Energy World: US Treasury Attorney Discusses Pending ITC Guidance at Finance Forum
- PV-Tech: Colorado PUC reverses decision and approves community solar programme
- Utility Dive: SDG&E becomes first California utility to hit net metering cap
- The Guardian: Floating solar is a win-win energy solution for drought-stricken US lakes
- US News: World Bank to back India’s solar power initiative
Opinion
Have a great day!
Yann