Completes Agreement with Societe Generale Equipment Finance
WALTHAM, Massachusetts, March 8, 2016 /PRNewswire/ -- EuroSite Power™ Inc., (OTCQX: EUSP the "Company") an On-Site Utility solutions provider, offering clean electricity, heat, hot water and cooling solutions to healthcare, hospitality, housing and leisure centres in the United Kingdom (UK) and Europe is pleased to announce the previously discussed agreement (press release here) with Societe Generale Equipment Finance (SGEF) has been fully executed. Providing project financing for qualifying On-Site Utility installations, the SGEF agreement allows EuroSite to pursue larger and more varied opportunities.
"Covering new On-Site Utility projects in the mid-to-large end of the market, SGEF's committed project financing means we may now confidently and more aggressively target larger opportunities as well as those customers with multiple potential installation sites," said Paul Hamblyn, Managing Director of EuroSite Power. "With this formal financing agreement in place, EuroSite Power is positioning to rapidly expand its On-Site Utility model throughout the UK," Mr. Hamblyn added.
Under the terms of a typical On-Site Utility agreement, highly efficient combined heat and power (CHP) systems are installed and commissioned at a customer's facility at no upfront cost to the customer. The reliable clean power technology is owned, operated, and maintained by EuroSite Power and the customer is billed according to their usage, at a guaranteed discounted rate to local utility fee structures. Because EuroSite Power assumes all the upfront expense of equipment purchase and installation, in the past the Company was constrained by availability of funds in its pursuit of appropriate customer installation projects. The addition of SGEF's committed project financing removes this hurdle and lays the foundation for strong growth.
To facilitate growth in installations and project backlog, the Company has hired additional sales personnel. The new talent will work hand in hand with SGEF's dedicated account management team to streamline the credit and project approval process.
Speaking about the new financing and sales team additions, EuroSite Power chief executive officer Dr. Elias Samaras noted, "This formal agreement for project financing marks a milestone for the Company. As was laid out on the most recent quarterly earnings call, we are extremely focused on executing on our business plan and delivering shareholder value via the previously outlined growth initiatives. The finalized agreement with Societe Generale for project financing, along with the Corona Energy agreement securing discounted long term natural gas supply, give the Company a solid competitive advantage in the market place for winning new business."
As of January 31, 2016, EuroSite Power operated 30 systems totaling 3,078 kW of installed capacity with a combined contract value of $84.9 million.
EuroSite Power sells the energy produced from an onsite energy system to an individual property as an alternative to the outright sale of energy equipment. On-Site Utility solution customers only pay for the energy produced by the system and receive a guaranteed discount rate on the price of the energy. All system capital, installation, operating expenses and support are paid by EuroSite Power.
About EuroSite Power
EuroSite Power Limited is a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE). The Company provides institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by conventional energy suppliers – without any capital or start-up costs to the energy user. More information can be found at www.eurositepower.co.uk.
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings, including its annual report on Form 10-K for the fiscal year ended December 31, 2014. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
SOURCE EuroSite Power Inc.