Christopher Nightingale controls Dragon Energy, which will receive up to 666.67 million shares in Alternative Energy in return for the technology. The shares will be issued in a number of tranches dependent on the granting of specific patents: the initial payment is 200 million shares.
At 3 cents a share, and assuming all the shares are issued, that values the technology at $20 million. PA Strategy Partners believes the technology is worth $31.5 million, assuming all the patents are granted. The deal is classed as a reverse takeover.
Nightingale, who could end up owning 42.4% of Alternative Energy, is also lending Alternative Energy $2 million in the form of a convertible loan to provide working capital. The loan is convertible at 3 cents a share. A further $1 million is being raised from a share issue.
Alternative Energy has assessed and proven the viability of the eRoof system of energy generation and is developing LED lighting products that can be used in combination with eRoof. The company is purchasing patents that relate to the use of the technology to harness sunlight, wind and water to generate power. The initial focus will be on eSolar, which uses photovoltaic cells incorporated into eSlates.
Pro forma net assets will be $23.9 million.
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