California green energy solutions provider Bitech Technologies—which in January announced a business combination with Fort Worth’s solar and energy storage development company Bridgelink Development—has executed a definitive agreement on a business combination with Bridgelink’s wholly owned subsidiary Emergen Energy.
Under the agreement, Bitech will acquire Emergen’s rights to develop a portfolio of battery energy storage system projects with a cumulative storage capacity estimated at 1.965 gigawatts and rights to develop a portfolio of solar energy development projects with a cumulative capacity estimated at 3.840 GW.
The companies said the agreement underscores a “unified commitment” to advancing the development of projects in the U.S., including in Texas, Arizona, and Louisiana. The closing of the agreement is expected to be completed by no later than April 24.
Under the agreement’s terms:
- Bitech will own 100% ownership interest in Emergen and Bridgelink will own roughly 31.3% of the company’s outstanding common stock.
- The company, under the continued leadership of its current team, will retain its name and ticker symbol while welcoming new executive team members from Bridgelink.
- The company will be composed of two divisions: (1) The BESS and Solar Division, responsible for pursuing, executing, and implementing the Development Projects; and (2) The Technology Solutions and Acquisition Division, that will focus on technology solutions sales as well as growth by acquisitions.
- Bitech and Bridgelink will jointly participate in corporate development efforts with capital expansion following the closing of the business combination, with the common goal of funding the development projects and achieving an uplisting to NASDAQ as the next step in its corporate expansion strategy.
Leadership and goals
Benjamin Tran will continue to hold his role as Bitech’s board chairman and interim CEO, while Cole Johnson, CEO of Bridgelink Development and manager of Emergen Energy, will join Bitech as its president with the responsibility of leading its BESS and Solar Division.
Tran said that the combined business would result in “a mutually advantageous partnership to benefit our shareholders.”
“Through the combination of our complementary strengths, we’re establishing a powerful new alliance that is expected to result in rapid growth for a thriving future with the addition of these remarkable development projects,” Tran said in a statement. “We believe that we will be able to secure the needed financing for the projects that, following their launch, have a potential valuation of up to approximately $325 million based on net present values of potential cashflows using industry standard multiples and discount rates.”
Johnson said, “As an experienced operating partner with Bitech in this exciting business partnership, we’re proud to contribute to the advancement of innovation and sustainability in the renewable energy industry.”
The companies said that by utilizing state-of-the-art battery energy storage systems, upon completion of the planned development projects, they expect to be able to effectively store surplus energy during periods of low demand at a lower cost and then release it during peak demand when prices are at their highest.
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