Alternative Energy Partners Announces Reorganization, Acquisition and Stock Dividend
Alternative Energy Partners (AEGY), a provider of comprehensive alternative energy solutions, announces that it has undertaken a corporate reorganization that will allow it to focus on fuel cell technology in the immediate future, while issuing a dividend to its shareholders. AEGY’s plans for reorganization include the transfer of its Elan Energy, Inc. and Sunarias Corp. subsidiaries to another, as-yet-undisclosed publicly traded company, which will acquire the subsidiaries in a share exchange transaction.
As part of the reorganization, AEGY will acquire all of the outstanding shares of Renewable Energy and Water, Inc. (REW), a developer and systems integrator of renewable energy projects and water reclamation solutions including fuel cell technology, from Healthcare of Today, Inc. REW provides its customers with a dynamic and customized combination of technologies and processes including water treatment technologies, anaerobic digestion of waste to create energy and biogas, and fuel cell power plants. The company integrates commercially proven stationary fuel cell power plant technologies as key components of its renewable energy projects and water reclamation solutions. Fuel cells have emerged as a preferred technology to position large consumers of energy for independence from utilities and grid power. REW is currently undergoing the survey process and is under a letter of intent with a major drainage district in the Central Valley of California to develop a water remediation project there.
AEGY’s new President and CEO Jason Davis said, "We continue to feel that Elan Energy will be highly successful, but it does not fit into our immediate strategy for AEGY. We plan to focus AEGY on developing alternative energy and energy efficiency projects such as fuel cells, water reclamation and solar PV, which is an ever-increasing and profitable market for us. Our HVAC holdings will now be concentrated within our Xnergy company through both organic growth and future acquisitions. We intend to brand Xnergy across the nation as our platform company for Energy Services, HVAC, engineering, and construction."
The spinoff will allow Elan to continue its growth unhampered while enabling AEGY’s shareholders to now partake of two energy ventures rather than just one. As part of the spin-off, the shares of the as-yet unidentified public company will be distributed to the shareholders of AEGY on a pro-rata basis.
The result of the transactions, which are expected before year end, will be four operating subsidiaries within AEGY: Shovon, LLC; Xnergy, Inc.; REW; and SkyNet Energy Systems, Inc. Once the transactions are closed, AEGY intends to proceed with the filing of its registration statement on Form S-1, as previously announced.