PHILADELPHIA, March 6, 2019 /PRNewswire/ -- In December 2015, Pardee Resources Company (OTC: PDER) (the "Company") invested $7.7
million in a limited partnership that purchased mobile solar generators from DC Solar Solutions, Inc. ("DC Solar") and, in
turn, leased the generators to DC Solar Distribution, Inc., an affiliate of DC Solar. The Company recently learned through
public sources that the government seized substantially all of the assets of DC Solar and its affiliates in December 2018. DC Solar and its affiliates, including our lessee, subsequently filed for Chapter 11
bankruptcy protection in February 2019. An affidavit from a Federal Bureau of Investigation
special agent was filed in February 2019 asserting that DC Solar was operating a fraudulent
"Ponzi-like scheme" and that a majority of the mobile solar generators sold to investors and a majority of the lease revenues
claimed to have been received by DC Solar Distribution, Inc. may not have existed.
The Company is fully engaged in gathering additional information regarding this developing situation. Currently, the
extent to which the Company's partnership may be able to recover the related assets remains uncertain. Although the Company
currently is unable to determine the financial impact, if any, arising from this situation, it could be as much as its investment
of $7.7 million. In connection with this investment, the Company had previously recognized
$5.6 million of renewable energy investment tax credits, as well as other tax benefits, part or all
of which could be reversed.
"While of great concern, we believe this is an isolated situation and that the Company's other solar investments remain
sound," said Carleton P. Erdman, President and Chief Executive
Officer.
In addition to historical statements, this press release contains statements relating to future events and our future
results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform
Act of 1995, and include statements that relate to the impact of the developing situation described above. While these
forward-looking statements represent our judgments and future expectations concerning our business, a number of risks,
uncertainties and other important factors could cause actual developments and results to differ materially from our
expectations. These factors include, but are not limited to: difficult economic conditions, the scope of the fraud alleged
to have been conducted by DC Solar, and other risks and uncertainties. As a result, these forward-looking statements may
turn out to be incorrect. We are under no obligation to (and expressly disclaim any obligation to) update or alter these
forward-looking statements whether as a result of new information, future events or otherwise.
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SOURCE Pardee Resources Company