N2OFF, INC. Entered into an Agreement to Fund up to € 8 million for 50% Rights in Several Solar PV Projects to be Developed by Solterra Renewable Energy Ltd.
Rhea-AI Summary
N2OFF, Inc. (NASDAQ: NITO) has entered into an agreement with Solterra Renewable Energy to fund up to €8 million for solar PV projects. The first project, located in Melz, Germany, has a capacity of 111 MWp and will receive €2.08 million in funding. The project has obtained municipal approval and an indicative solution for grid connection.
N2OFF and private investors will provide loans based on milestones, with 7% annual interest, gaining up to 50% rights to net earnings. The company aims to create a reliable revenue stream in the growing solar energy sector. Solterra plans to develop and sell the project at Ready-to-Build status, capitalizing on high market demand for such projects.
Positive
- Entry into the solar energy sector with a 111 MWp project in Germany
- Potential for reliable revenue stream from carefully selected projects
- Up to 50% rights to net earnings from funded projects
- Right of first refusal for future project investments up to €6 million
- Partnership with experienced renewable energy company Solterra
Negative
- Significant capital investment required (up to €8 million) with returns dependent on project success
- Exposure to risks associated with the renewable energy sector and project development
News Market Reaction – NITO
On the day this news was published, NITO declined 8.60%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
First PV project in a capacity of 111 MW, received a municipal approval as well as an indicative solution for grid connection by a large regional energy service provider in Germany
Neve Yarak, Israel, July 31, 2024 (GLOBE NEWSWIRE) -- N2OFF, Inc.\ (NASDAQ: NITO) (FSE:80W) (“N2OFF” and the “Company”), a clean tech company engaged in sustainable solutions for energy and innovation for the agri- tech, announced today that together with a number of private investors (the “Investors”), it entered into an agreement with Solterra Renewable Energy Ltd. (“Solterra”), to fund up to
Yair Harel, Solterra’s CEO, commented, “Our goal is to fully develop the Melz project and sell it at Ready-to-Build (RTB) status. We see high demand in today’s markets for RTB projects from multiple types of investors. Our cooperation with N2OFF will allow us to bring multiple projects to fruition, extracting substantial value from these projects for the benefit of both companies’ investors.”
David Palach, N2OFF’s CEO, added “We are pleased to announce our entry in the solar energy sector with our first project. Our goal is to create a reliable revenue stream by financing projects carefully selected by the Solterra team, our experts in the field. Based on recent market trends, we expect the global demand for alternative energy solutions to continue growing annually, as awareness of the need to create environmentally friendly solutions to help preserve our planet increases. We believe this to be a contributing factor to the attractive profit margins in this sector. Subject to the right of first refusal granted to us, we look forward to analyzing and investing in future projects.”
The project has been approved by the municipality of Melz and additionally received attention for a potential grid connection by a large regional energy service provider in Germany.
Solterra was founded in 2022 by Eran Litvak and Yair Harel, in the field of renewable energy. Each of the founders is a veteran in the energy sector, with a track record of dozens of successful projects. In addition, both founders are experienced entrepreneurs and managers with over 20 years of proven experience in identifying business opportunities, enhancing projects, and maximizing value in both the energy and financial sectors.
Solterra is currently active in three primary target markets: Italy, Poland, and Germany, managing a portfolio of at various stages of Solar PV development with a total cumulative capacity of approximately 300 megawatts. According to Precedence Research, the global solar PV market was estimated at
Pursuant to the Agreement, N2OFF and the Investors will finance the project up to an aggregate of
About N2OFF Inc:
N2OFF, Inc. (formerly known as Save Foods, Inc.) is a clean tech company engaged in sustainable solutions for energy and innovation for the agri- tech. Through its operational activities it delivers integrated solutions for sustainable energy, greenhouse gas emissions reduction and safety, quality solutions for the agri- tech market. NTWO OFF Ltd., N2OFF's majority-owned Israeli subsidiary, aims to contribute in tackling greenhouse gas emissions, offering a pioneering solution to mitigate nitrous oxide (N2O) emissions, a potent greenhouse gas with 310 times the global warming impact of carbon dioxide. NTWO OFF Ltd., aims to promote agricultural practices that are both environmentally friendly and economically viable. N2OFF recently entered the solar PV market and will provide funding to Solterra Renewable Energy for the current project in the total Capacity of 111 MWp, as well as future projects. Save Foods Ltd., N2OFF's majority-owned Israeli subsidiary, focuses on post-harvest treatments in fruit and vegetables to control and prevent pathogen contamination. N2OFF also has a minority ownership in Plantify Foods, Inc., a Canadian company listed on the TSXV that offers a wide range of clean-label healthy food options. For more information on Save Foods Ltd. and NTWO OFF Ltd. visit our website: www.n2off.com.
Forward-looking Statements:
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on our current expectations, they are subject to various risks and uncertainties including the success of our collaboration with Solterra, entry into future projects, our ability to successfully enter the solar PV sector and the profitability of such industry. Actual results, performance or achievements could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including market conditions as well as those discussed under the heading “Risk Factors” in N2OFF’s Annual Report on Form 10-K filed with the SEC on April 1, 2024, and in any subsequent filings with the SEC. Except as otherwise required by law, we undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. We are not responsible for the contents of third-party websites.
Investor Relations Contacts:
Michal Efraty
michal@efraty.com
FAQ
What is the capacity of N2OFF's first solar PV project in Germany?
How much funding has N2OFF agreed to provide for the Melz project?
What is the interest rate on the loan provided by N2OFF for the solar projects?
What percentage of rights to net earnings will N2OFF receive from the funded projects?
What is the projected growth rate of the global solar PV market according to the press release?
