Principal Solar, Inc. Announces Sale and Financing of Solar Projects, Shift Toward New Business Strategy
Principal Solar, Inc. , a former developer of utility scale solar power projects, announces today that, as a step toward executing on a new business strategy, the IS46 has reached mechanical completion and IS42 solar project has reached the final stages of being sold and financed. Net proceeds to PSI are scheduled to be received incrementally between closing and Commercial Operations (September 2017). The proceeds will be used to fund significant transaction costs for the two projects.
Michael Gorton, CEO, PSI, states, “We consider this a positive development for the Company and our stockholders in pursuit of our next business venture, which may not focus on the solar industry. We are in the final stage of discussions and due diligence regarding a specific investment opportunity to potentially rebuild stockholder value, should the company have proceeds remaining from the sale of IS42.”
As previously disclosed in earlier filings with the Securities and Exchange Commission, including the 10-K filed April 14, 2016, and the 10-Q filed on May 19, 2016, proceeds from the sale will be used to fund described mediation settlements, notes payable, commissions payable, current liabilities, legacy liabilities, and deferred compensation. The settlement of these liabilities is expected to involve extensive negotiations with multiple parties that make the amount of proceeds remaining for a future investment, if any, uncertain.