ENTECH, a Texas-based supplier of solar technology to NASA, has announced a merger with a subsidiary of New Jersey-based WorldWater & Solar Technologies (WWAT), a developer of high-power solar systems.
Under the terms of the merger, WWAT will pay $5m in cash, $39.3m in shares, and $5m in earn-out payments (five per cent of WWAT’s gross revenues until this amount is reached) to ENTECH stockholders.
In addition to these payments to ENTECH’s shareholders, WWAT will pay £1.3m of ENTECH’s liabilities at closing and provide $5m of working capital to initiate the manufacture of the ENTECH 20x concentrator systems for a 50MW plant in
The plant is expected to begin operating in the second quarter of 2008. WWAT has signed a letter of intent with Spain-based M&G Promociones for installation of ENTECH systems for 10MW in 2008, 10 MW in 2009, 10 MW in 2010 and 50MW in 2011 and another 50MW in 2012.
‘Together, we expect to become one of the lowest cost providers of solar energy in the world,’ said Quentin T Kelly, chairman and CEO of WWAT. ‘This year, we’ve seen explosive interest and tremendous growth opportunities in large solar installations, particularly in places like Spain and the Southwestern United States, and we are now in a position to take the lead in providing multi-megawatts of electricity for major projects.’
According to ENTECH, its 20x concentrator technology combined with WWAT’s control devices will allow for the installation of large solar farms with greatly reduced requirements for solar cell materials.
Once the merger is completed, ENTECH’s existing shareholders are expected to own 6.6 per cent of WWAT. ENTECH will continue to maintain its identity, location and business operations in terrestrial and space solar energy.