SinglePoint Sub Direct Solar Enters into LOI to Acquire Standard Eco Solar with Unaudited Annual Revenue of $11,345,061 (2019)
July 29 2020 - 9:13AM
InvestorsHub NewsWire
SinglePoint Subsidiary Direct Solar
of America Enters into Letter of Intent (LOI) to Acquire Standard
Eco Solar with Unaudited Annual Revenue of $11,345,061 (2019)
Initiates National Roll Up Strategy
with Intended Acquisition of a Majority Interest in Standard Eco, a
solar Developer and Installer
Phoenix, AZ -- July 29, 2020 -- InvestorsHub NewsWire --
SinglePoint Inc. (OTCQB:
SING) (“SinglePoint”), today announced that its majority owned
subsidiary, Direct Solar of America, LLC (“Direct Solar”), has
entered into a Letter of Intent (“LOI”) to acquire Standard Eco
Solar (“Standard Eco”), a developer and installer of grid-tied
solar electric systems in Texas, Illinois, and Arizona for a
combination of cash and stock. Direct Solar and SinglePoint are
currently conducting due diligence and SinglePoint will issue
common stock once the definitive agreement and audit are completed,
facilitating this investment through Direct Solar of
America. The transaction is expected to close no
later than December 2020. Standard Eco achieved
unaudited revenues of $12,331,703 in 2018 and
$11,345,061 in 2019 and was operationally profitable in both
years.
Pablo Diaz, CEO Direct Solar of America, stated, “We are excited
to have entered into this LOI and to begin the work necessary to
complete this important acquisition. We believe there is a
significant opportunity to embark on a roll up strategy in the
solar industry and we see this potential acquisition as an
important first step forward for Direct Solar in achieving the goal
of being the premier national residential and commercial solar
provider. We look forward to reaching a definitive agreement and to
add the experienced management and financial strength that comes
with this acquisition, as we work to build significant long-term
value within our business and for the SinglePoint
shareholders.”
This is the first acquisition from the recently announced
national solar expansion through targeted business acquisitions for
SinglePoint and Direct Solar. This intended acquisition will
broaden the combined service offering expertise and increase the
revenue base in additional to expand gross
profits. Standard Eco represents an ideal acquisition
that is well positioned to leverage and complement the sales and
customer acquisition platform built by Direct Solar that has
recently expanded its nearly national footprint to cover 34 states,
including Texas, Illinois, and Arizona where Standard Eco currently
operates. Direct Solar intends to use this potential
transaction, when completed, as a catalyst for its recently
announced national solar installation roll up
strategy. We will continue to target accretive companies
within the Solar and Renewable Energy space that can benefit from
our national footprint and meet our previously announced
acquisition strategy. Our goal is to become the national
leader in residential and commercial solar solutions and offerings
operating in all 50 states.
“Our intended acquisition of Standard Eco complements our
overall strategy of providing full spectrum, market leading
solutions to Direct Solar’s solar customers as we continue our
national expansion through a combination of organic growth and
targeted acquisitions that will enhance and deepen our services
within our footprint,” said Wil Ralston, President, SinglePoint
Inc. “This acquisition leverages many of Direct Solar’s
core capabilities and we look forward to the opportunity to expand
and grow the overall revenue through expanded solar services.”
A consolidation phase in the domestic residential solar market
has recently begun with the combination of Vivint and Sun Run in a
merger that was announced on July 15, 2020 in which Sun Run
acquired Vivint for a reported $3.2 billion. One of the
key components of that deal was the value of having a high-quality
sales channel. It is estimated that the Sun Run – Vivint
combination will create an entity that has about 15% of the current
residential market share in the US. It is estimated that
Residential Solar in the US has only reached 3%
penetration. In 2019 nearly 40% of all new electricity
was added by solar-centric solutions. The global solar energy
market was valued at $52.5 billion in 2018 and is projected to
reach $223.3 billion by 2026, growing at a CAGR of 20.5% from 2019
to 2026. After a strong 2019 Q4 and a record Q1 of this
year, residential solar installations were hampered in Q2 by work
stoppages, delays and temporary muted consumer demand caused by the
complications of the current pandemic and corresponding economic
shut downs which is accounting for the industry forecast of a 25%
year-over-year drop in residential solar
installations. Residential Installation has since begun to see
a rebound in consumer demand and is set to resume growth in
2021.
Direct Solar’s high quality and strategically valuable
decentralized virtual sales platform serves as an expert concierge
for prospective homeowners and small commercial clients guiding
them through the contract process and eventually handing over
customers already under contract to installation partners within
our covered sales territories. The recent and continuing
expansion of Direct Solar’s sales platform into 34 states and
counting, allows the company to reach more households and raise
awareness about the benefits of home solar and batteries which
continue to drive the market for residential and small commercial
customers. The Direct Solar specialized concierge sales
approach provides an immediate cost savings for installers who
typically would resort to hiring expensive door-to-door sales
professionals. In a post or continuing pandemic world, partnering
or combining through acquisition with a leading virtual specialized
sales platform like Direct Solar makes a lot of sense for smaller
independent solar contractors and installers like Standard Eco.
About SinglePoint, Inc.
SinglePoint Inc. (OTCQB:
SING) is a fully reporting company with core holdings in Solar
Energy Services and Industrial Hemp based Consumer
Products. Acquired in May 2019, Direct Solar of America,
a majority owned subsidiary, now operates its leading national
solar sales brokerage model in 34 states. In the past
year Direct Solar of America has virtualized its sales platform and
has added and expanded its corporate offerings to include Direct
Solar Capital (Financial) and Direct Solar Commercial with a focus
on financing, designing or developing small to mid-size commercial
opportunities and projects. 1606 Original Hemp, has been
designed and created to be the premier category leader in
manufacturing and marketing high quality smokable industrial hemp
consumer products for sale through traditional retail channels and
online. Since its debut in late 2019, 1606 Original Hemp
has been placed into hundreds of retail locations across the
country and has amassed a large social media following that
continues to grow. The Company has a portfolio of
non-core focused business that are searching for strategic
partnerships or other alternative solutions. SinglePoint is
committed to positioning the Company to be able to up list to the
highest exchange possible which we feel is a benefit to our
stakeholders and shareholders.
Connect on social media at:
https://www.facebook.com/SinglePointMobile
https://twitter.com/_SinglePoint
https://www.linkedin.com/company/singlepoint
https://www.youtube.com/user/SinglePointMobile
For more information visit: www.SinglePoint.com
Forward-Looking Statements
Certain statements in this news release may contain
forward-looking information within the meaning of Rule 175 under
the Securities Act of 1933 and Rule 3b-6 under the Securities
Exchange Act of 1934, and are subject to the safe harbor created by
those rules. All statements, other than statements of fact,
included in this release, including, without limitation, statements
regarding the potential closing of the transactions contemplated by
the LOI with Standard Eco, potential future plans and
objectives of the Company, are forward-looking statements that
involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate (that any such closing
will occur) and actual results and future events could differ
materially from those anticipated in such statements.
SinglePoint
888-682-7464
investors@singlepoint.com
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