UGE INTERNATIONAL LTD - UGEIF STOCK NEWS

UGE International (TSXV: UGE) (OTCQB: UGEIF) has announced an update on the closing of its previously announced plan of arrangement with 1000896425 Ontario , an affiliate of NOVA Infrastructure Fund II, LP. The closing is now expected to occur on or about August 14, 2024, slightly later than the previously stated date of August 8, 2024.

The delay is attributed to the need for certain shareholders participating as rolling shareholders to complete share transfers related to their continued participation in UGE following the arrangement's completion. UGE has confirmed that the Purchaser has fulfilled its obligations under the Arrangement Agreement, including depositing the required cash consideration with TSX Trust Company, the acting depositary.

UGE International (TSXV: UGE) (OTCQB: UGEIF) has announced that its securityholders have approved the proposed plan of arrangement for a going private transaction with 1000896425 Ontario , an affiliate of NOVA Infrastructure Fund II, LP. The arrangement was approved by 99.747% of the votes cast at the annual general and special meeting. The transaction is expected to close on or about August 8, 2024, subject to final court approval and other customary conditions. Following the completion of the arrangement, UGE's common shares are expected to be delisted from the TSX Venture Exchange. This move represents a significant change in the company's ownership structure and public status.

UGE International (TSXV: UGE) (OTCQB: UGEIF) has announced the commercial operation of its 510kW rooftop community solar project in Staten Island, New York. The project, built atop Expressway Plaza shopping center, will offset 700 metric tons of CO2 emissions annually and power approximately 140 homes. Subscribers will save at least 10% on electricity bills.

The project joins UGE's Low-to-Moderate Income (LMI) program, reserving 30% of generated energy for LMI households. This aligns with UGE's goal of having over 25% of its operational portfolio serve LMI households by 2026. Feldco, the property owner, will receive long-term lease payments and benefited from a UGE-funded roof replacement.

With this addition, UGE's operating portfolio now stands at 7.1MW, with eight more projects totaling 18.1MW in deployment and construction. This marks UGE's tenth rooftop community solar project in metro New York City, with two more expected to be operational by early fall.

UGE International (TSXV: UGE, OTCQB: UGEIF) has mailed its notice of meeting and related materials to shareholders, warrantholders, and debentureholders for its annual general and special meeting on July 31, 2024. At this virtual meeting, securityholders will vote on a proposed plan of arrangement through which 1000896425 Ontario , an affiliate of NOVA Infrastructure Fund II, LP, will acquire all issued and outstanding shares for C$2.00 per share. The board unanimously recommends approving the arrangement. The interim order was granted by the Ontario Superior Court of Justice, and the arrangement requires specific voting thresholds and regulatory approvals to proceed.

UGE International reported its Q1 2024 financial results, highlighting significant developments. The company ended the quarter with 5.6MW of operating assets, contributing $175.9K in energy generation revenue, a 64% increase from Q1 2023. Total revenue was $468.0K, a 10% decline from the previous year, attributed to phasing out legacy EPC contracts and external engineering services.

Gross margins improved to 92% from 41% in 2023, driven by higher recurring revenue and the sale of development stage projects. However, net loss widened to $4.0MM from $2.8MM due to increased investment, headcount, and development costs. Cash used in operations was $3.5MM, with a cash balance of $1.1MM at the end of the quarter.

UGE reached commercial operation on two projects totaling 0.8MW and mobilized on 9.5MW of projects. The company's project backlog was 316MW as of March 31, 2024.

UGE International (TSXV: UGE, OTCQB: UGEIF) has announced an arrangement agreement for a going-private transaction with NOVA Infrastructure Fund II, LP. The Purchaser will acquire all common shares of UGE for C$2.00 per share, representing a 270% premium to the closing price on May 28, 2024. Management and certain shareholders will roll over a significant portion of their shares. The transaction, recommended by a special committee, offers liquidity and a substantial premium to non-rolling shareholders. The agreement includes customary conditions, court approval, and a break fee of up to $5.2 million. A shareholder meeting to vote on the transaction is expected in July 2024.

Heliene, Inc. announced a multiyear module supply agreement and strategic partnership with UGE, a leading solar developer, to expand access to renewable energy in the U.S. The agreement will help UGE improve project economics, reduce supply chain risk, and qualify for tax credits, ultimately boosting the growth of domestic solar manufacturing.

UGE International partners with MaxSolar, a national renewable energy project operations & maintenance provider, to enhance its portfolio operations and maintenance strategy. UGE has a decade of experience in providing EPC services and has transitioned into a full-lifecycle developer and IPP since 2020. With a portfolio of 12 operating projects totaling 6.6MW and nine projects totaling 18.6MW under construction across six states, UGE has roughly 1GW of projects in its development pipeline. MaxSolar will provide nationwide O&M services to ensure optimal project performance, including preventative and corrective maintenance, system monitoring, emergency response services, and array cleaning.

UGE International reported its financial results for 2023, showing a high-growth year with doubled operational portfolio size and NTP on 18.2MW projects. However, revenue declined due to legacy contract run-off and shift in services. The net loss increased due to investment in project portfolio development. Cash used in operations rose significantly, and the cash balance decreased. Project backlog decreased, but UGE is focusing on scaling its platform as an IPP.