MMMW Receives 100 kW Solar Project Letter of Intent from RMTN with Innovative Financing Plan
February 26 2015 - 9:09AM
InvestorsHub NewsWire
Mass Megawatts Wind Power, Inc. receives 100 kW
Solar Project Letter Of Intent from Rocky Mountain Ayre, Inc., A
Publicly Traded Company, with Innovative Financing
Plan
WORCESTER, MA.
-- February 26, 2015 -- InvestorsHub NewsWire -- Mass
Megawatts Wind Power, Inc. (OTCQB:MMMW)
today announced that it has received a letter of intent from Rocky
Mountain Ayre, Inc. (OTC:RMTN)
to purchase a 100 kW solar tracking power system for
$300,000. This represents the largest pending order, to-date
for the company’s patent-pending, Solar-Power Tracking
System (STS).
The deal is expected to apply an innovative
financing approach that utilizes a partnership flip to benefit tax
equity investors over the initial years of the project, and then
transfers (or flips) interest to the developer for the remainder of
the useful-life of the system. What’s rather unique here is
that the developer, as a public entity, can realize an
almost-immediate financial return as stock appreciation and capital
gains are driven by the valuation of the expected, future income
from the solar project. This provides a significant advantage
over non-public entities that would typically require the
developer to wait until ownership control actually flips, several
years later, before receiving compensation. Publically traded
companies with its stock appreciation from the anticipated solar
project revenue, also have the ability to raise equity through
secondary offerings to fund additional solar development which can
accelerate capital gains further, creating a cycle of continuous
growth.
In partnership flips, the developer
and tax equity investor form a joint-venture partnership and the
allocation of profits, cash, and tax benefits flip between the
parties during the life of the partnership. Flips allow the
developer to invest alongside tax equity investors to retain a
residual interest in the system after installation, and they allow
the transfer of most tax benefits to the tax investor. They also
allow the developer to regain near 100% ownership of the assets at
nominal cost after all the tax benefits have been used by the tax
investor. When the developer is structured as a public
entity, the value
of expected future income can be realized immediately through stock
appreciation and capital gains to realize a rate of return in the
near-term verses waiting for ownership control to transfer several
years later. Also, capital gains are typically taxed at a
lower rate as compared to ordinary operating income.
The STS is a complete solar-power system
designed to automatically adjust the position of solar panels
throughout the day to receive an optimal level of direct
sunlight. This improves solar-power generation by 28% with
only a 5 to 10% increase in cost.
The Mass Megawatts STS utilizes a revolutionary,
patent-pending framework that significantly reduces the torque
required to adjust the position of its solar panels throughout the
day. Unlike other tracking technologies that apply a
vertical, up-and-down motion, the STS rotates the solar panels into
position using a horizontal motion anchored at the base of each
solar unit. The amount of torque needed to accomplish the
tracking movement is minimal, and can be accomplished with a
simpler, lower-cost design.
Starting at 6.25 kW rated units, a Mass
Megawatts STS system is appropriate for ground-level, residential
and business sites, as well as, commercial, roof-top
installations. Mass Megawatts coordinates all aspects of
system delivery, including permitting, installation, and working to
obtain any available tax incentives. They monitor the
performance of each system, and provide a full, performance
guarantee.
With its patent pending, Solar Tracking System,
Wind Electric Power Generation system, only approximately 55
million shares issued and outstanding and very little debt, Mass
Megawatts believes it is well positioned to ramp-up production in
the shorter term while expanding its infrastructure to support
mass-production goals in the longer term.
This press release contains forward-looking
statements that could be affected by risks and uncertainties. Among
the factors that could cause actual events to differ materially
from those indicated herein are: the failure of Mass Megawatts Wind
Power, also known as Mass Megawatts Windpower, to achieve or
maintain necessary zoning approvals with respect to the location of
its power developments; the ability to remain competitive; to
finance the marketing and sales of its electricity; general
economic conditions; and other risk factors detailed in periodic
reports filed by Mass Megawatts Wind Power. Additionally, Mass
Megawatts Wind Power stock quote and Mass Megawatts stock price may
be impacted by global condition. Mass Megawatts Wind Power Inc.
expected and anticipated positive and negative impact on the Mass
Megawatts stock price and the MMMW
stock quote.
Product information and sales inquiries can be
made through the contact page at www.massmegawatts.com
, the company’s website.
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