Etrion Corporation - Chairman, Aksel Azrac
Chairman, Aksel Azrac
Source: Brazil Iron
  • Etrion (ETX) has completed the sale of its 60-megawatt Mie Solar Project to Tokyo-based developer Ziva Energy
  • The company pocketed a total of approximately C$42.3 million (JPY 3.4 billion) for the sale, pursuant to a dispute resolution agreement dated September 23, 2020
  • Etrion’s subsidiary, Etrion Japan KK, was also reimbursed a development fee of roughly $3.68 million (JPY 300 million)
  • This follows a separate payment earlier this month of around $8.67 million (JPY 700 million) that was provided for previously completed work
  • Etrion (ETX) is currently steady at $0.30 per share, as of 1:56pm EDT

Etrion (ETX) has completed the sale of its 60-megawatt Mie Solar Project to Tokyo-based developer Ziva Energy.

According to a development services agreement signed in 2015 between the two companies, Etrion would fund the development of the project and, once completed, take ownership of it.

However, the deal fell apart in 2018 following a dispute.

This was resolved in September this year with a new agreement, which outlined the purchase by Ziva of Etrion’s contractual structure and associated economic obligations related to the Mie Project.

Etrion has now pocketed a total of approximately C$42.3 million (JPY 3.4 billion) for the sale, along with a development fee that was paid to the company’s subsidiary, Etrion Japan KK, worth roughly $3.68 million (JPY 300 million).

This comes after a separate payment earlier this month, in which Etrion Japan KK received around $8.67 million (JPY 700 million) for previously completed work.

Marco Antonio Northland, CEO of Etrion, commented on the sale of the project.

“I am very pleased that we were able to monetise this project and collect almost [$55.19 million].

“The Mie transaction greatly strengthens our cash position and provides flexibility on how best to maximise shareholder value,” he said.

Earlier this week, Etrion issued a separate announcement, which said it was considering the sale of other assets included in its Japanese solar portfolio.

The company has engaged Mitsubishi UFJ Morgan Stanley Securities as financial advisor to assist in the potential sale of the its 57-megawatt operating solar portfolio and its 45-megawatt solar park currently under construction in Japan.

A number of non-binding proposals have already been received, with a short-listed group of possible buyers now carrying out due diligence activities.

At least one binding offer is expected to be received before the end of the year, culminating in an anticipated transaction completion in the first quarter of 2021.

Etrion (ETX) is currently steady at $0.30 per share, as of 1:56pm EDT.

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