Sunvalley Solar, Inc. (OTCPK:SSOL) entered into an agreement to acquire Rayco Energy Inc. from Ricky Chu, Todd Hamer, and Gabriel Cooley for $0.43 million on May 15, 2016. As per the consideration, Sunvalley Solar, Inc. will issue 0.08 million shares of Series B Preferred stock and $0.35 million in cash. Ricky Chu will receive 0.07 million preferred shares and Todd Hamer and Gabriel Cooley will receive 1,000 preferred shares each. Ricky Chu, Todd Hamer, and Gabriel Cooley will receive $0.17 million, $0.09 million, and $0.09 million respectively from the cash proceeds. The cash portion is conditional upon the 2016 net operating profit of Rayco Energy Inc. To evidence the unpaid balance of the purchase price, Sunvalley shall issue to Rayco’s shareholders 6% subordinated promissory notes in the aggregate amount $0.35 million, payable only upon Rayco’s 2016 net operating profit being in excess of $0.01 million with interest and principal payable monthly on first day of each month commencing May 1, 2017. Rayco Energy Inc. will operate as a wholly-owned subsidiary of Sunvalley Solar, Inc. The Rayco Energy Inc. energy business is expected to contribute significantly to Sunvalley Solar, Inc.'s revenues in 2016. Sunvalley Solar, Inc. (OTCPK:SSOL) completed the acquisition of Rayco Energy Inc. from Ricky Chu, Todd Hamer, and Gabriel Cooley on May 15, 2016. Rayco Energy, Inc. was renamed as Sunvalley Solar Energy, Inc. effectively on August 09, 2016.