Principal Solar, Inc. signed a binding term sheet to acquire ZONA Energy, Inc.
November 04, 2019
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Principal Solar, Inc. (OTCPK:PSWW) signed a binding term sheet to acquire ZONA Energy, Inc. on November 4, 2019. As reported, Principal Solar, Inc. will acquire ZONA Energy in a reverse triangular merger transaction. As a result of merger, current Zona shareholders will receive 1 share of PSWW for each share of Zona held. The binding term sheet is subject to the execution of a definitive agreement, shareholder approval, and FINRA approval and outlines many conditions to closing including: amendment of the PSWW Certificate of Incorporation to increase authorized shares to 300,000,000 with 2,000,000 shares designated as preferred and 298,000,000 designated as common; the execution by PSWW of a purchase and sale agreement with an affiliate of Zona Energy, Inc. for the purchase of various oil and gas working interests in approximately 15,000-20,000 acres surrounding the current Zona acreage position to create a large contiguous Zona block of 20,000 to 25,000 acres with a targeted closing prior to December 31, 2019; a name change of PSWW, symbol change, and new CUSIP number; amendment by PSWW of its certificate of incorporation to provide for a reverse split of 10 to 1; and the filing by PSWW of appropriate articles of merger between its newly formed subsidiary and Zona Energy, Inc. whereby Zona becomes a wholly owned sub of PSWW. The transaction is targeted to close in the fourth quarter of 2019 or early 2020.
Principal Solar, Inc. is a strategic investor in and acquirer of organizations and technologies that support opportunities in traditional, renewable, and clean energy sectors as well as an acquirer and operator of undervalued petroleum-producing properties. The Company conducts business through its subsidiaries, providing consulting in the energy sector, licensing, and commercializing energy related intellectual property, and engaging in a selection process and conducting due diligence for future acquisitions. Its subsidiaries include Bayou Road Investments, Inc. (Bayou Road Investments), NexTeal Energy, and E-3 Petroleum. Bayou Road Investments seeks to acquire licenses for patented technology, primarily in the green energy sector, and to subsequently monetize these technologies. NexTeal is focused on heavy electric vehicle (EV) technologies. E-3 Petroleum houses the Companyâs investments and acquisitions in oil and gas properties.