ROSEVILLE, Calif.-- SPI Solar ("SPI") (SOPW:OTCBB), a vertically-integrated photovoltaic solar developer, today announced that it has entered into a non-binding memorandum of understanding ("MOU") to subscribe to shares in Guocang Group Limited ("Guocang")(HK). This strategic investment is being made along with Evergrande Real Estate Group Limited ("Evergrande")(3333.HK). Guocang is engaged in various business segments, and its board believes that the additional funding represented by this MOU would enable it to, among other things, pursue investment in the high-growth area of solar power in China. Following the close of the transaction, Evergrande, together with SPI Solar, will work with Guocang to develop solar projects in China, with SPI providing technical support and services.
Under the terms of the non-binding MOU, SPI Solar and Evergrande will subscribe to 7,464,114,830 shares and 30,813,397,130 shares, respectively, of Guocang at a subscription price of HK $0.03135 per share. In addition, SPI Solar, via a separate announcement today, announced that it had entered into a purchase agreement with a subsidiary of Evergrande as the lead investor, along with another investor, for the sale of U.S. $43.8 million of shares of SPI's common stock in private placements.
The completion of the subscription as contemplated by the MOU is subject to certain conditions, including entry into a definitive subscription agreement and satisfaction of the conditions therein.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Solar Power, Inc. (SOPW:OTCBB):
SPI Solar ("SPI") (Solar Power, Inc.) is a vertically-integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities and turnkey residential solar solutions to its business, government and utility customers. For additional information visit: www.spisolar.com.
Safe Harbor Statement:
This release contains certain "forward-looking statements" relating to the business of SPI Solar, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as "believes", "expects" or similar expressions. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the company's reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.
[Editor's note: See news release also issued today, October 7, 2014, entitled, "SPI Solar Announces Entering Into Purchase Agreement For $43.8-Million Private Placement"]