TUSTIN, CA--(Marketwired - Jul 10, 2013) - Premier Holding Corporation (
"We are delighted to announce these LOIs with leading companies in the lighting sector," commented Randall Letcavage, chief executive officer of Premier Holding Corp. "AEON and Luminous Engineering and Design each have successful histories of delivering cost-efficient lighting solutions to customers worldwide. With strong sales organizations and expertise in complementary technologies to Premier Holding Corp., the addition of these businesses to Premier Holding's value chain for energy efficiency solutions is an ideal match and complements our existing HID lighting business."
- Establishes Premier's lighting business competitively in the burgeoning LED markets, both domestically and internationally;
- Contributes $3 million to $4 million in revenue over the next 12 months (LEDI expected to be accretive immediately);
- Brings expertise in engineering, analysis, energy efficiency tax and rebate structures, and turnkey financing in the LED markets, as well as support of existing lighting business;
- Intellectual property and private label capabilities; and
- Increases online presence in opening up the residential markets in addition to existing commercial business.
The AEON LOI contemplates that 250,000 shares of Premier Holding Corporation stock would be issued to AEON, in addition to $80,000 upon closing as consideration for the purchase of AEON. In addition, 1,000,000 additional shares will be issued to AEON based on achievement of certain milestones.
"The AEON acquisition brings immediate value and synergies to our company, including about $2,000,000 in its business pipeline with a number of marquee customers, and depth in our offerings through distribution agreements amongst several leading lighting manufacturers," said Letcavage.
The Luminous Engineering and Design, Inc. LOI contemplates that 2,000,000 shares of Premier Holding Corporation stock would be issued to LEDI, in addition to $75,000 upon closing as consideration for the purchase of LEDI. In addition, 3,000,000 additional shares will be issued to LEDI based on achievement of certain milestones.
"The acquisition of Luminous Engineering and Design will provide Premier Holding Corporation a competitive offering, talented leadership to the burgeoning LED marketplace, tremendous depth in suppliers which will broaden our offering, added depth in terms of engineers and installation capabilities, enhanced inventory control and international exposure," Letcavage added. LEDI maintains ownership of the "Lumilux" and "Ablaze" lines of LED lighting for commercial and residential applications.
"In addition to the tremendous benefits to E3, our energy services business, these acquisitions bolster our already thriving residential and commercial client offerings at The Power Company, our deregulation services business," stated managing member Patrick Farah. "Now, our agents will offer quality and affordable LED products to our tens of thousands of clients we are already assisting with lowering their energy costs."
The LOIs state that the consummation of the acquisitions will be conditioned upon customary closing conditions.
PRHL's mission is to lower its clients' energy costs and consumption while creating a positive impact on the environment. Lighting accounts for nearly 15 percent of the energy consumed in the U.S. building sector, compelling building owners to seek more energy efficient lighting systems. The U.S. Department of Energy forecasts that LED lighting is expected to represent 36 percent of lumen-hour sales on the general illumination market by 2020 and 74 percent by 2030.
The acquisition is subject to satisfactory due diligence and a definitive agreement between the two parties. For more information on the Letter of Intent and the proposed transaction, please see the Company's latest 8-K SEC filing.
Premier Holding Corp. Safe Harbor
This press release contains certain statements that may include "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipate," "optimistic," "intend," "will" or other similar expressions. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
About Premier Holding Corporation
The Company provides financial support and management expertise, which includes access to capital, financing, legal, insurance, mergers, acquisitions, joint ventures and management strategies. The Company also intends to acquire clean technology companies and/or green products and services that are accretive and that can be seamlessly integrated and utilize the overall economics of such products and services for the benefit of its customers. Through subsidiaries we offer renewable energy production, energy efficiency products and services to commercial middle-market companies, Fortune 500 brands, developers and management companies of large-scale residential developments. Additional integrated business offerings include direct energy services as power purchase agreements (PPAs), energy financing and leasing of generation programs in urban and rural real estate environments, lighting efficiency systems and refrigeration systems. For more information visit PRHL Investors Relations: www.prhlcorp.com.