NEW YORK - Alternus Clean Energy, Inc. (NASDAQ: ALCE), a renewable energy company, has announced the acquisition of advanced energy storage solution provider LiiON, LLC. The move is aimed at enhancing Alternus' capabilities in the renewable energy sector, particularly in the area of battery storage and microgrids.
LiiON, established in 2009, brings a wealth of experience and a strong customer base to Alternus, including high-profile clients such as Amazon (NASDAQ:AMZN), NASA, and Walmart (NYSE:WMT). Alternus will integrate LiiON's technologies into a new Battery Energy Storage (BESS) division, expanding its presence in the utility storage market and leveraging existing LiiON revenues.
The acquisition, valued at $5 million, will be settled through a combination of debt and equity, including a $2 million loan note and the issuance of 250,000 shares of common stock, implying a share price of $12.00. This transaction is expected to immediately increase Alternus shareholder equity by approximately $3 million.
Vincent Browne, CEO of Alternus, expressed optimism about the acquisition's role in fulfilling the company's strategy to become a more comprehensive energy provider. Gary Gray, CEO of LiiON, echoed this sentiment, highlighting the importance of energy storage in the clean energy transition and the potential for impact in critical sectors such as data centers.
The acquisition is subject to standard closing conditions and agreements, with completion anticipated before the end of the fiscal year 2024. Alternus is recognized as an independent power producer with projects across North America and Europe, aiming to reach 3GW of operating projects within five years.
According to the International Energy Agency's World Energy Outlook 2024 report, the data center industry, which consumes about 1% of global electricity, is expected to grow significantly, underscoring the need for advanced energy storage systems.
This expansion by Alternus is based on a press release statement and is part of a strategic effort to address the growing demand for reliable and sustainable energy solutions in energy-intensive industries.
In other recent news, Alternus Clean Energy Inc. has been actively engaging in significant corporate operations. The company has enacted a 1-for-25 reverse stock split, reducing its outstanding common stock from about 87.3 million shares to roughly 3.5 million shares in an effort to meet Nasdaq's minimum bid price requirement. This move follows recent developments such as the termination of an agreement to acquire an 80MWp portfolio of solar installations from C2 Taiyo Fund I, LLP due to unmet conditions.
Despite this, Alternus has announced definitive agreements to acquire an 80 MWp solar portfolio across the United States, a transaction valued at $60 million. This acquisition is expected to generate an average annual revenue of $6.7 million and operating income of $5.1 million.
Furthermore, Alternus has expanded its Hawaii projects through a partnership with Hover Energy LLC and Hawaii Construction & Development Consulting, and is actively seeking additional partnerships and acquisitions in renewable energy segments.
In corporate changes, the company has increased its authorized shares of common stock from 150 million to 300 million, elected John McQuillan as a Class I director, and expanded the company's 2023 Equity Incentive Plan. These are among the recent developments for Alternus Clean Energy.
InvestingPro Insights
Alternus Clean Energy's recent acquisition of LiiON comes at a challenging time for the company's stock performance. InvestingPro data reveals that ALCE has experienced significant price declines across various timeframes. The stock's year-to-date total return stands at a staggering -96.37%, with a one-year return of -99.49%. This context underscores the importance of the LiiON acquisition as a potential catalyst for reversing the company's fortunes in the market.
The average daily trading volume for ALCE over the past three months has been 0.41 million USD, indicating moderate investor interest. This level of liquidity could be beneficial as the company integrates LiiON and seeks to communicate its expanded capabilities to the market.
InvestingPro Tips suggest that Alternus Clean Energy's stock is currently trading at a significant discount compared to its recent historical valuations. This information, combined with the strategic acquisition, may present an opportunity for investors who believe in the company's long-term potential in the renewable energy sector.
For readers interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into Alternus Clean Energy's financial health and growth prospects. The platform includes a total of 12 additional tips for ALCE, which could be valuable for investors looking to make informed decisions in the volatile renewable energy market.
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