SinglePoint (OTCQB: SING) 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, Arizona - July 29, 2020 (Investorideas.com 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.
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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.
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