AC Energy Corp. and wholly-owned subsidiary ACE Endevor Inc. signed subscription agreements with Natures Renewable Energy Development Corp. to fund the development of the Lal-lo solar power project in Lal-lo, Cagayan.
ACEN and Endevor subscribed to 82,500 common shares in NAREDCO with a par value of P100 per share for a total of P8.25 million.
“The subscription price will be used by NAREDCO to fund the development of the proposed 200-MW Lal-lo solar power project in Lal-lo, Cagayan. The planned capacity of Phase 1 is 100 MW,” ACEN said in a disclosure to the stock exchange.
NAREDCO is a special purpose vehicle for the development of the proposedLal-lo solar project, ACEN’s joint venture project with CleanTech Renewable Energy 4 Corp.
The 82,500 common shares represent 60 percent of the outstanding shares of the company. Of the total 82,500 common shares, ACEN said the subscription to 37,500 common shares would be subject to the necessary regulatory approvals from the Securities and Exchange Commission on the increase in authorized capital stock of NAREDCO.
The ACEN board approved the joint venture with CleanTech Global Renewables Inc. on Oct. 18, and CleanTech assigned its rights and obligations under the joint venture to wholly-owned subsidiary CREC4.
The subscribed shares include 45,000 common shares to be issued from NAREDCO’s unissued capital stock and 37,500 common shares to be issued out of the increase in NAREDCO’s authorized capital stock.
The Lal-lo, Cagayan solar project site was deemed ideal for solar projects given the area’s high resource quality, flat landscape and potential for expansion as the company plans to buy the adjacent lots.