Etrion Announces Agreement to Sell Three Japanese Operating Solar Projects

Etrion Corporation, a solar independent power producer, announced that Solar Resources Holding Sŕrl and Etrion Japan K.K., wholly-owned subsidiaries of the Company, have entered into agreements to sell their interests in the Company’s 13.2 MW Komatsu, 24.7 MW Shizukuishi and 9.3 MW Mito operating solar energy projects (collectively the “3 Projects”) to three Japanese companies, GK Komatsu Solar, GK Shizukuishi Solar and GK MITO Solar (collectively the “Consortium”), for an aggregate purchase price of approximately JPY 8.252 billion (or USD 74.9 million), subject to certain adjustments at closing. The Company is currently negotiating the sale of the Company’s fourth operating project, Misawa, which is currently undergoing repairs from winter storms, to a fourth purchaser associated with the Consortium.

Completion of the sale of the 3 Projects pursuant to the Transfer Agreements is subject to certain conditions precedent including, among other things, the Consortium being satisfied with the Company’s recovery plan for the Misawa project, as well as all necessary regulatory, shareholder and third-party approvals. The closing of the transaction is currently expected to take place before the end of June 2021.

Management Comments
Marco A. Northland, Etrion’s Chief Executive Officer, commented: “We are very pleased to sign agreements for the sale of three of our four Japanese solar operating projects and look forward to completing the repairs of the Misawa project to the satisfaction of the Consortium. Since entering Japan in 2012, we have executed across the full project lifecycle – most recently optimizing production, reducing operating costs and extracting value through refinancing – with success. We are extremely proud of the steady and efficient solar platform built.”

Etrion was advised on this transaction by Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.