N2OFF, Inc. has entered into an agreement with Solterra Renewable Energy Ltd. (“Solterra”) to fund up to €8 million in solar PV (photovoltaic) projects, in collaboration with private investors (the “Investors”). The first project under this agreement will be in Melz, Germany, with a total capacity of 111 MWp (Megawatt peak). The Company and Investors will loan a combined €2.08 million for this project.
Under the agreement, N2OFF and the Investors will finance the Melz project up to $2.2 million (approximately €2 million) to help it achieve RTB status. The loan will be disbursed based on accomplished milestones, accruing interest at a rate of 7% per annum, and will grant the Company and Investors up to 50% of the net earnings rights. Additionally, the agreement provides N2OFF and the Investors with the right of first refusal for further project investments of up to €6 million.
Yair Harel, Solterra’s CEO, said, “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, noted “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.”
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