March 6, 2014
The Bellingham, Wash.-based solar energy firm said that CleanGen, Edmonton, Alberta, includes CleanGen Power Corp., which uses biomass wood from its recycling facility to generate electricity.
As part of the deal Sunvault also purchased a 50-percent share of Cutting Edge Tire Recycling LP, which shreds tires, according to the news release.
"There are definite synergies here that make the acquisition work well for both parties," said Gary Monaghan, Sunvault president and CEO. "Sunvault will be able to utilize its technologies in conjunction with what CleanGen is doing."
In addition, CleanGen Power also has been considering investing in a landfill, transfer station and waste-to-energy technology.
CleanGen is an Aboriginal-owned company that anticipates net income for 2014 of about $1.5 million to $1.8 million with gross revenues of about $5 million. Its electricity generation technology is scalable and can provide power to remote or isolated villages, including Aboriginal communities, of which there are 175 in Canada, Sunvault said.
The purchase calls for 19.5 million Sunvault shares to be issued to about 1.45 million Alberta Ltd. shareholders from treasury.