Toronto – UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the “Company” or “UGE”), a leader in the commercial and community solar industry, is pleased to announce its milestones for the third quarter ending September 30, 2021 and the appointment of Stephanie Bird as CFO.
Growth in pipeline and backlog continues
During the third quarter, UGE transferred over 20 MW of unfilled pipeline projects, which exceeded 105 MW as of September 30, 2021 against 83.7 MW on June 30, 2021 and 60.6 MW on December 31, 2020. The Company’s overall pipeline (including backlog) also increased significantly, exceeding 800 MW as of September 30, 2021, from 441 MW on June 30, 2021.
Backlog growth is expected to continue as the company now reaches significant scale and establishes itself as a leader in community solar energy. The growth in the backlog comes from new and existing customers, coinciding with the growth of the pipeline, which nearly doubled quarter over quarter. The UGE added projects to its order book by Pennsylvania, Maryland, and new York, the latter being the first new York project outside Con Edison’s service territory. 1.5 MW of the order book came from The Philippines.
Pipeline growth was bolstered by an 81-site letter of intent signed with a global real estate company in August 2021. The multi-state portfolio is currently in development, with the first projects due to go on hold in the fourth quarter.
In new York, another 740 kW rooftop community solar project has received an implementation notice with expected commercial operation by the first quarter of 2022. Non-recourse project-level debt has been guaranteed for the project at the end of the year. using a usual structure of construction to permanent. The permanent debt bears an interest rate of 5.5%, a decrease of 50 basis points from the most recent closing, with a term of seven years and amortization over 20 years; during the construction period the interest rate is 8.5%. Meanwhile, deployment continues in projects that were the subject of a prosecution notice in the second quarter, consisting of two community solar projects in Staten island and eight micro-grids across New York City.
Updates to sales agreements
Finally, during the quarter, UGE announced a partnership agreement with Bloomberg which provides for Bloomberg employees to subscribe to clean energy produced by UGE’s solar systems. UGE has also signed a power off-take agreement with a Fortune 100 company, details of which are expected to be announced in due course. Direct off-take agreements can result in lower project finance costs and increased project yields, while providing buyers with clean energy at lower rates than available on the grid.
“With the third quarter behind us, our targets for 2021, including that of reaching 120 MW of delayed project development, are firmly within our grasp,” said Tyler adkins, Director of Revenue at UGE. “Across the organization, we continue to execute, with recent portfolio and drawdown agreements providing a model for replication going forward.
Stephanie Bird appointed CFO; Granting of options
The UGE is happy to have appointed Stephanie Bird as CFO, effective today. Stéphanie is a seasoned finance and operations professional, with over 25 years of experience in financial management. Stéphanie was until recently CFO of Cloud DX, and previously held management positions at Just energy, Kognitiv Company, and G Adventures.
“We are delighted to welcome Stephanie and her proven track record in helping businesses as UGE enters its next phase of growth,” said the CEO of UGE, Nick blitterswyk. ‘On behalf of the Company, I would like to thank Marissa Lauder for his significant contributions over the past year, helping UGE pivot to our asset ownership model and rebuild our balance sheet. I also want to thank her for ensuring a smooth transition from CFO, and wish her continued success in her future endeavors. ‘
At September 29, 2021, the Company granted a total of 475,000 stock options (the “options”) to its members of the board of directors and to its new chief financial officer in accordance with the stock option plan of the employees of the Company. Each option allows its holder to acquire one common share of the Company at an exercise price of CAD $ 1.41 per share, the five-day VWAP immediately preceding the grant date.
UGE develops, owns and operates commercial and community solar projects in the United States and in strategic markets abroad. Our distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers with no upfront costs. With over 500 MW of global experience, we work daily to power a more sustainable world.
Phone. : +1 917 720 5685
Email: [email protected]
Certain information contained in this press release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, some of which are beyond the control of the Company. Forward-looking statements are often characterized by words such as “plan”, “continue”, “expect”, “plan”, “intend”, “believe”, “anticipate”, “estimate”, “May”, “may”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Readers are cautioned that the assumptions used in preparing this information, while believed to be reasonable at the time of preparation, may prove to be imprecise and, as such, forward-looking statements should not be relied on unduly. Forward-looking statements include, without limitation, the expected closing of the offering, the intended use of the proceeds and obtaining regulatory approvals, including the approval of the TSX Venture Exchange. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.