Legend Investment Completes Acquisition of Girasolar BV
Company Expects to Recognize Significant Revenue in FY 2006
Legend Investment Corp. (OTC: LVCP message board, news, quote, dd) today announced that it has closed its previously announced acquisition of controlling interest in GiraSolar BV (www.girasolar.com).
In fiscal 2004/2005, GiraSolar generated $12,000,000 in sales revenue. In fiscal 2005/2006, GiraSolar is projecting revenues of approximately $16,000,000, with a further revenue projection of $30,000,000 for fiscal 2007. GiraSolar expects to achieve profitable results in fiscal 2006.
Included in the acquisition are GiraSolar's three main divisions which consist of 100% owned DutchSolar B.V., 51% owned GiraSolar Turkey Ltd. Ste. (GST), and 100% owned GiraMundo B.V. DutchSolar BV is based in the GiraSolar headquarters in Deventer, The Netherlands, and has production locations in the Netherlands and abroad.
"We expect that this acquisition will position Legend Investment to become one of the leading publicly traded solar companies in the world. The team at GiraSolar is committed to significantly increasing sales in their existing markets as well as in new markets such as the United States. We believe that we have a foundation in place to build significant shareholder value led by a world class team," said Peter Klamka, President of Legend Investment.
"We are pleased that the continued cooperation between GiraSolar and Legend Investment allowed us to conclude this transaction ahead of schedule. We look forward to the future growth that this strong foundation will allow," said Wieland Koornstra, CEO of GiraSolar BV.
Under the terms of the agreement, Legend issued two million restricted shares for its majority interest in GiraSolar BV.
Legend Investment to Acquire Majority Owned Control of GiraSolar B.V.
Legend Investment Corp. (OTC: LVCP) today announced that it has entered into a binding letter of intent to acquire fifty-one (51%) percent of Netherlands-based GiraSolar B.V. www.girasolar.nl
In fiscal 2004/2005, GiraSolar generated $12,000,000 in sales revenue. In fiscal 2005/2006, GiraSolar is projecting revenues of approximately $16,000,000, with a further revenue projection of $30,000,000 for fiscal 2007. GiraSolar expects to achieve profitable results in fiscal 2006.
GiraSolar three main divisions consist of 100% owned DutchSolar B.V., 51% owned GiraSolar Turkey Ltd. Ste. (GST), and 100% owned GiraMundo B.V. DutchSolar BV is based in the GiraSolar headquarters in Deventer, The Netherlands, and has production locations in the Netherlands and abroad. DutchSolar carries the GiraSolar brand of photovoltaic solar modules (GS125, GS135, GS145, GS155) and the GiraSolar DPE range of electronic devices, ranging from regulators for PV systems to heavy duty automatic voltage stabilizers, batteries and battery chargers for application in developing countries and disaster or crisis areas (emergency relief applications) as well as 3rd party products. Further, DutchSolar is involved in solar cell supply to manufacturers of solar modules and R&D projects, i.e. fundamental solar cell research and application development and research to improve silicon manufacturing processes. DutchSolar BV exclusively supplies its products to entities associated with the GiraSolar Group. www.dutchsolar.nl
GiraSolar Turkey (GST) supports clients in its geographical area of operation, stretching from Turkey and nearby Mediterranean countries into the Middle East. GST provides a full-service package and currently supplies solar energy components and systems to various governmental solar energy projects, as well as B2B and private clients. Further, it supplies various electronic devices and other components to the group's entities. www.girasolar.com.tr
GiraMundo is primarily a project development company, aiming at identifying possibilities for solar energy applications in rural areas of developing countries. To this end, GiraMundo works closely with partners in Asia, Africa, and Latin America. The project team of GiraMundo has extensive experience and was part of the team realizing the electrifying and award-winning "Yeelen Kura" project in Mali, West Africa, bringing light to approximately 20.000 rural dwellers in Southern Sahel.
W.M. Koornstra, CEO of the GiraSolar group, issued the following statement: "Integrating the GiraSolar group with Legend Investment is one of the most exiting events in the history of the company. We expect that the now combined expertise of GiraSolar and Legend will enable even faster growth of revenue and results. This event also allows us to share our international success with those who entrust us to get the job done: clients, business partners and shareholders.
"The solar market is already booming worldwide with rapidly increasing double-digit growth rates over the last 7 years, even exceeding 45% in 2005. With the growing awareness that fossil fuel dependency cannot last, growth rates are not expected to drop below a double-digit figure for another decennium. Now that California has approved its multi-billion dollar 'California Solar Initiative' -- with other states and more countries likely to follow, as in Europe and Asia -- the same growth rates may be expected in the USA as elsewhere. Further, the recently expressed federal support for further development of alternative energy sources by Mr. Bush himself proves that the solar industry has moved passed the phase of being 'alternative' and is ready to assume a solid position in the energy economy. The GiraSolar team members are most excited about joining Legend and we expect to have a significant impact on Legend's development, which just entered into the solar industry in 2005. And not just this year, but for many years to come."
"We are very excited to expand our relationship with GiraSolar BV with this acquisition. We expect it to create significant value for our shareholders in the months and years ahead," said Peter Klamka, President of Legend Investment.
Legend Investment expects to pay for the acquisition of GiraSolar through the issuance of up to eight million shares restricted of Legend Investment common stock. Upon closure, Legend Investment would have approximately 12,678,480 shares issued and outstanding after the closing of the acquisition. The transaction is expected to close by February 28, 2006.
Legend Investment Completes Second Sale of Solar Energy Products
Legend Investment Corp. (OTC: LVCP) today announced that it has successfully completed its second alternative energy transaction. The company's solar energy division has purchased and resold $200,575 worth of solar modules this month.
The total value of transactions of solar products completed by the company in the past two months is now $567,605. All of the sales were made to customers outside of the United States. The company expects to secure additional sales in the coming weeks.
Legend Investment plans additional development of its solar energy division to service customers inside and outside the United States. This week the California Public Utilities Commission passed the California Solar Initiative (CSI), an historic plan that allots USD $3.2 billion for solar energy rebates in the state for the next 11 years, providing for the installation of approximately 3000 MW of solar energy.
"We are seeing real revenue opportunities in the alternative energy space. Our abilities to access the capital markets coupled with the demand for supplies of alternative energy bode well for building shareholder value," said Peter Klamka, President of Legend Investment.
Legend Investment Completes First Sale of Solar Panels
Partnership to Form New Alternative-Energy Subsidiary
Legend Investment Corp. (OTC: LVCP) today announced that it has successfully completed its first alternative-energy transaction. The company's new solar energy division has purchased and subsequently resold $366,930 worth of solar panels. This first transaction is part of a larger overall agreement for further supply. The solar panels were purchased from a supplier based in the United States and resold through Legend Investment Corp. affiliates overseas.
According to a leading alternative-energy trade group, solar energy has become an extremely profitable investment in certain target countries, and recent research and technological advances are expected to further increase returns on solar investments. The global solar market has grown 25% annually in the past ten years with recent peaks as high as 45%, whereas hydrocarbon energy demand typically grows between 0-2% per annum.
Peter Klamka, the President of Legend Investment, commented, "We are very pleased at the speed and size of our first transaction in the solar power arena, and the company expects that we will see additional orders and deals flow in the next few quarters. The recent announcement from BP, Britain's largest oil company, that it expects to invest $8 billion into alternative energy over the next 10 years shows that increased energy prices and global instability are making alternative energy solutions much more attractive to both large networks all the way to the local household consumer. The continued price decline in products such as solar roofing panels make this an attractive alternative for the energy-conscious consumer."
Legend Investment Negotiating With European Solar Company
Legend Investment Corporation (OTC: LVCP) today announced that it is currently in negotiations with a European solar panel distributor. The intent of the negotiations is to form a subsidiary of Legend Investment for the purpose of sourcing solar-related products for the domestic market in association with the European affiliate.
According to a leading alternative-energy trade group, solar energy has become extremely cost effective. Additional research and technological advances are expected to bring the costs of solar energy down even further. The global solar market has grown 25% annually in the past ten years and over 35% worldwide in the last five years.
"We believe there are opportunities to develop businesses in alternative energy sources at this time. The markets for alternative energy are growing with the continued decline in fossil fuel sources. However, there still appear to be very few opportunities for alternative energy companies to access the capital markets," said Peter Klamka, President of Legend Investment.
In addition to acting as a supplier, Legend Investment also anticipates working with the European partner to acquire alternative energy companies. Legend Investment can give no assurances that its negotiations with the European solar panel distributor will result in the parties entering into an agreement or that it will ultimately acquired any alternative energy companies.
Legend Investment to Seek Approval in Texas
Legend Investment Corp. (OTC: LVCP) today announced that it intends to become an approved oil and gas operator within the State of Texas.
Legend is currently completing the application called a Form P-5 for submission to the Railroad Commission of Texas. Once approved, the company will be able to directly drill, operate, and/or produce oil and gas in Texas.
The Form P-5 requires the applicant to demonstrate a level of financial assurance as well as disclose certain organization details.
"We believe that it is in the best interests of our shareholders if we have the regulatory clearance to directly operate in the oil and gas industry in Texas," commented Peter Klamka, President of Legend Credit Inc.
The company anticipates that having a valid P-5 will allow it to negotiate more favorable terms with potential acquisitions as well as give the company a level of independence in selecting new oil and gas projects.
The company expects to submit the form to the Railroad commission within 10 days.
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," "soon," "anticipates," "plans," or "expects," and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties including the ability of the company to complete and submit the P-5 application and be approved by the Texas Railroad Commission. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. Reference is made to the Company's filings with the Securities and Exchange Commission for a more complete discussion of such risks and uncertainties.
