Press release from CNW Group
Crius to expand solar energy business with proposed purchase of assets from SunEdison
Monday, August 08, 2016
Crius to expand solar energy business with proposed purchase of assets from SunEdison
08:00 EDT Monday, August 08, 2016
Acquisition of market-leading residential solar technology platform would add new lead generation, sales, installation and financing capabilities
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, Aug. 8, 2016 /CNW/ - Crius Energy Trust (TSX: KWH.UN) (the "Trust") today announces the proposed acquisition by Crius Solar, LLC, a subsidiary of Crius Energy, LLC ("Crius" or the "Company") of certain assets from SunEdison Inc. (OTCMKTS: SUNEQ) ("SunEdison"), a renewable energy company in the United States, including their proprietary residential solar lead-generation platform, customer lead databases, marketing materials and human capital. The proposed acquisition is expected to significantly expand the Company's capabilities in the solar energy segment. The asset purchase agreement provides for a one-time payment to SunEdison of US$1.5 million. The closing of the transaction is subject to customary conditions precedent, including approvals required by the SunEdison bankruptcy process.
"The proposed acquisition is expected to significantly accelerate our ability to capture market share in the fast growing U.S. solar industry," said Michael Fallquist, Chief Executive Officer of the Trust. "We expect the acquisition to increase solar sales as the technology platform acquired enables us to partner with third-parties for lead generation and sales plus new operational capabilities will result in a higher margin contribution from each solar system sold. We expect this investment to deliver significant long-term value to our unitholders through increased earnings from our solar business and continued diversification of Crius."
The expanded solar capabilities of Crius will be complemented by the existing strategic alliance with global solar energy provider Sungevity, Inc. ("Sungevity"). Crius will continue to offer residential solar energy products in all its current markets provided by Sungevity.
About Crius Energy Trust
The Trust was established to provide investors with a distribution-producing investment through its ownership interest in Crius Energy. With over 900,000 residential customer equivalents, the Company is a comprehensive energy solutions partner that provides electricity, natural gas and solar products to residential and commercial customers. The Company connects with energy customers through an innovative family-of-brands strategy and multi-channel marketing approach. This unique combination creates multiple access points to a broad suite of energy products and services that make it easier for consumers to make informed decisions about their energy needs. The Company currently sells energy products in 19 states and the District of Columbia with plans to continue expanding its geographic reach.
The Trust intends to continue to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which preclude the Trust from holding any "non-portfolio property" (as defined in the Tax Act). Material information pertaining to the Crius may be found on SEDAR under the Trust's issuer profile at www.sedar.com or on the Trust's website at www.criusenergytrust.ca.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements and forward-looking information (collectively, "Forward-Looking Statements") that involve substantial known and unknown risks and uncertainties, most of which are beyond the control of Crius, including, without limitation, those risks described in the annual information form of the Trust for the fiscal year ended December 31, 2015, dated March 15, 2016 (under the heading "Risk Factors"), in the MD&A of the Trust for the three month period ended March 31, 2016 and in the Final Prospectus. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words of phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection" and "outlook") are not historical facts and may be Forward-Looking Statements which involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such Forward-Looking Statements. Forward-Looking Statements in this news release include, but are not limited to, the anticipated benefits of the acquisition of certain assets from SunEdison Inc.; the timing and ability of Crius to satisfy the conditions precedent (including the approval of the bankruptcy court), if at all, to completing the acquisition of those assets from SunEdison Inc.; the ability of the Company to integrate the acquired assets;; the expectation that the acquisition will significantly expand the Company's capabilities in the solar energy segment; and the Trust's objectives and status as a "mutual fund trust" and not a "SIFT trust". These Forward-Looking Statements are based on reasonable assumptions and estimates of management of the Trust at the time such statements were made. Actual future results may differ materially as Forward-Looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Trust to materially differ from any future results, performance or achievements expressed or implied by such Forward-Looking Statements. Crius cautions investors of the Trust's securities about important factors that could cause Crius' actual results to differ materially from those projected in any Forward-Looking Statements included in this news release. No assurance can be given that the expectations set out in this news release will prove to be correct and accordingly, prospective investors should not place undue reliance on these Forward-Looking Statements. These statements speak only as of the date of this news release and Crius does not assume any obligation to update or revise them to reflect new events or circumstances, except as required by law.
SOURCE Crius Energy Trust
