Under the exclusivity agreement, the Company has agreed to negotiate exclusively with the Buyer to sell the Company's distributed generation (“DG”) operating assets in China, with a total capacity of 206.8MW over a 60-day period.
The Buyer intends to acquire the project-based special purpose vehicles (“SPVs”) associated with the 206.8MW DG operating assets, which are owned by Zhejiang ReneSola Investment Ltd., ReneSola's subsidiary that holds the Company's DG projects in China.
Xianshou Li, Chairman and Chief Executive Officer of ReneSola, commented: “This transaction will substantially reduce the Company's leverage ratio and significantly improve cash flow and liquidity. Upon completing this transaction, the proceeds from the sale of the DG operating assets will provide us with more resources and flexibility to deploy our capital.”
Li continued, “We continue to pursue opportunities to develop, build and monetize small-scale and DG projects in China and other geographies, and believe our strategy meets the development trend of solar energy.”
There is no assurance that the Company and the Buyer will enter into a definitive agreement for a potential transaction and there is no assurance as to the form, terms or timing of any transaction even if an agreement is reached between the parties.