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Sunday, December 4, 2022

Another Move on Solar Power Inc. (OTCMKTS:SOPW)

Solar Power Inc. (OTCMKTS:SOPW) is moving up steadily since a brief dip below $1.50 a share. The stock recently made an explosive move up from pennies to recent highs of $2.95.

Based in California, SPI has sourced most of its solar panels from LDK Solar Co, Ltd.(OTCPK:LDKSY), a financially-wounded Chinese solar panel manufacturer that is currently in the process of a debt restructuring.

On October 3, SPI announced that it has closed the acquisition of Sinsin Renewable Investment Limited (“SRIL”), a limited liability company registered in Malta, as announced on September 9, 2014. Under the terms of the agreement, SPI’s subsidiary, SPI China (HK) Limited, acquired all of the outstanding capital stock of SRIL from Sinsin Europe Solar Asset and Sinsin Solar Capital (collectively “Sinsin”) for an aggregate purchase price of 70,660,000 Euros (U.S. $91,780,000) using a mixture of cash and SPI shares, including $27.4 million in SPI shares at $0.72 a share.

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As a result, SPI immediately adds solar photovoltaic (“PV”) projects in Greece with an annual nameplate capacity of 26.57 megawatts (“MW”) to its global portfolio. In addition, following the close of the transaction, the agreement contains a provision specifying that Sinsin or its affiliates may appoint SPI and its subsidiaries to provide engineering, procurement and construction (“EPC”) services on up to 360 MW of additional solar PV projects that Sinsin intends to invest in and/or develop over the next three years.

SOPW announced 2 new private placements towards the end of September; on September 17 the Company announced the completion of its private placement of common stock for an aggregate $25.0 million, as announced on July 29, 2014. Net proceeds are expected to be used for expansion of SPI’s global PV project activities, continued investment in ramping its YES!®Solar solution for the residential and small business segments, and for working capital purposes.

Then on September 23 SOPW announced that it has entered into a definitive purchase agreement for the sale of $48.25 million of common stock in a private placement. The company intends to use the net proceeds from the sale of the shares for expansion of SPI’s global PV project activities, continued investment in ramping its YES!®Solar solution for the residential and small business segments and for working capital purposes.

Clearly the filings being put out by SPI read more like a big board stock than a Company trading on the OTCBB but confusingly (considering the chart action) the filings how a Company that looks to be winding down rather than one that is growing. SPI is a Company that was doing over $10 million a quarter in sales just 3 years ago. That number has now fallen to less than half that.

Over the past 5 years the Company’s employee count has gone from 495 back in 2009 to a current count of 13 total employees. Not a lot of people for a Company that still claims over $72 million in total assets.

Looking at a 10q from 2 years ago SOPW had less than 200 million shares out – at $0.25 per share SPI traded at a very reasonable $50 million total valuation. A lot has changed however; according to the latest 1b the Company has 341 million shares out add to that the last 2 private placement which happened after that quarter and the OS goes well into the 400 million range, possibly close to 500 million total OS.

SOPW continues to make impressive gains on the OTCBB as the stock has run from its $0.25 base a few months ago to current highs of $2.95 a share. Currently trading at a market valuation in the $600 to $800 million range SPI is valued over 15 times what it was trading for a few years ago at double the revenues. It seems SPOW has been growing fast through acquisition in recent months and investors clearly like what they see.

Currently trading at a $1.13 billion market valuation SOPW does have $96.3 million in the treasury, rising short term debt and fast growing revenues reporting $16.2 million in Q1 2015 1st quarter revenues up from $3.6 million for the same period last year. The significant private placements announced recently show a very strong belief in SOPW. We will be updating on SOPW on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with SOPW.

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Disclosure: we hold no position in SOPW either long or short and we have not been compensated for this article.

Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.

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