PetroFalcon closes acquisition of Solar Resources; renames Etrion Corporation and changes Ticker Symbol
Monday, Sep 14, 2009
Etrion Corporation, formerly PetroFalcon Corporation, has closed the previously announced acquisition of 90% of the outstanding shares of Solar Resources Holding Sarl ("SRH"), a private renewable energy company, from Lorito Holdings Srl and other parties.
At the Company's Annual and Special Meeting ("AGM") on September 10, 2009, disinterested shareholders approved certain aspects of the acquisition of SRH, and the following board members were elected: Ian Lundin (Chairman), Ashley Heppenstall, John Craig, Clancy Cottman and Marco Northland.
Following the AGM, the Company completed the acquisition of 90% of SRH at cost for 2.3 million Euros (US$3.4 million) in cash. Etrion also advanced a loan to SRH in the amount of 1.35 million Euros (US$2.0 million) in order to repay an equivalent amount advanced to SRH by Lorito. Lorito is an investment company wholly owned by a Lundin family trust. The remaining 10% of SRH continues to be held by Mr. Northland.
Concurrent with the closing of the acquisition, the name of the Company was changed to "Etrion Corporation", and Mr. Northland was appointed as CEO of the Company. The common shares of the Company will commence trading on the Toronto Stock Exchange under the new symbol "ETX" on or about September 16, 2009.
Marco Northland, the Company's new CEO, commented, "I am pleased to close the acquisition, and I look forward to growing Etrion as an independent power producer in the renewable sector. Etrion will initially focus on building, owning and operating solar energy projects in Europe where government guaranteed premium electricity rates and non-recourse bank financing create attractive returns. Our first solar power plants in southern Italy are anticipated to begin operation in 2010. Etrion is well positioned to become a global renewable business with our pipeline of development projects, our strong net cash position and the financial support of our major shareholders."
The initial Italian solar projects are expected to be funded more than 80% by long-term non-recourse loans from an Italian bank, with the balance funded by the Company. Construction is estimated to last six to nine months, and the first electricity sales are expected during the third quarter of 2010.
About the Company
Etrion Corporation is a Canadian company based in Geneva, Switzerland and listed on the Toronto Stock Exchange (new ticker symbol "ETX"). The Company is focused on developing, financing, building, owning and operating global electrical power plants based on renewable sources of energy, including solar photovoltaic, solar thermal and wind. Etrion continues to own oil and gas investments in Venezuela acquired by PetroFalcon Corporation.
The Company is owned 45% by Lundin Petroleum, a Swedish independent oil and gas company traded on the Nordic Exchange (ticker symbol "LUPE"), approximately 10% by Vinccler CA, a Venezuelan construction firm specializing in large infrastructure projects, and approximately 9% by the Lundin family through various trusts.