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Alternus Clean Energy, Inc. (OTCQB:ALCE), a combined electric and other services provider currently valued at $83.52 million, has completed a significant transaction involving the sale of one of its subsidiaries, AEG MH 02 Limited (MH02), according to an 8-K filing with the Securities and Exchange Commission on Tuesday, May 13, 2025. According to InvestingPro data, the company’s stock has experienced significant volatility, trading at $0.04 per share, down 99.56% over the past year.
The agreement, dated May 7, 2025, detailed the sale of MH02, including its subsidiaries, to OBN Real Estate Limited and BVP Green Bond 2018 Limited for a total consideration that includes the assumption of approximately $19 million in debt. The Majority Buyer, OBN Real Estate Limited, took over 75.5% of MH02, while the Minority Buyer, BVP Green Bond 2018 Limited, acquired the remaining 24.5%.
As part of the deal, Alternus Clean Energy also agreed to a debt forbearance with the Majority Buyer, which will postpone the right to claim up to $17 million against the Company’s parent guarantee until MH02’s solar projects reach a ready-to-build status. Alternus retains the right to purchase the solar photovoltaic projects at fair market value, subject to a minimum price, as each reaches the specified status. InvestingPro analysis indicates the company’s overall financial health score is weak at 0.72, suggesting careful monitoring of its debt management strategies is warranted.
To facilitate part of the transaction, Alternus Clean Energy issued 10,660,000 shares of restricted common stock to the Minority Buyer. This move is part of a broader strategy to improve the company’s financial position by eliminating approximately $22.6 million in debt and related costs from MH02’s activities. The transaction is expected to enhance shareholder equity by about $14.4 million.
The sale of MH02 is part of Alternus Clean Energy’s ongoing efforts to streamline its operations and focus on its core business activities. With the stock trading near its 52-week low of $0.02, compared to a high of $12.46, investors seeking deeper insights into the company’s turnaround potential can access additional analysis and 7 more key ProTips through InvestingPro. The information provided in this article is based on a press release statement.
In other recent news, Alternus Clean Energy, Inc. has made notable adjustments to its Series A Super Voting Preferred Stock, as disclosed in an SEC filing. The company has increased the number of shares from one to ten thousand and altered the voting rights, granting each share 10,000 votes. This change could significantly influence the company’s governance structure. Additionally, Alternus Clean Energy is facing financial challenges, including a breach of payment obligations to Sunrise Development LLC, resulting in a debt of approximately $5.5 million. Another financial obligation involves a complaint from SPAC Sponsor Capital Access, claiming a debt of around $1.5 million. These legal and financial issues arise as the company continues to experience significant losses and seeks additional funding. Investors are encouraged to review Alternus Clean Energy’s recent Form 10-K for a detailed understanding of the risks and financial status. The company’s management is actively addressing these challenges, as stated in the filings.
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