Boston, MA 09/23/2014 (wallstreetpr) – American DG Energy Inc (NYSEMKT:ADGE)’ CEO John Hatsopoulos granted a loan of $3 million with zero interest rate for five years to its European subsidiary EuroSite Power to support its future growth.
John said that ADGE will support the near-term growth of EuroSite while funding for the installation process across the region and their working capital requirements. EuroSite can pay back when they have substantial funding for their growth or when it completes its fifth anniversary.
American DG Energy Inc (NYSEMKT:ADGE) will use the proceeds from its recent private placement and available cash balances of $13 million and $3.7 million related to prepaid projects, which are under construction. The companies hired Wolf and Company as its auditor.
Strong positioning
EuroSite offer on-site utility solutions such as clean electricity, hot water, heat and cool solutions to healthcare facilities, nursing care and hospitals; multi-tenant residential and educational institutions; hotels and recreational facilities across the Europe and the UK. It sells the energy to the customers through its efficient energy systems and charges for the energy produced from the system.
EuroSite, on the other end, pay for the capital investment such as system installation, support services and other operating expenses. The facilities are liable for a series of incentives like utility rebates, special fuel pricing and carbon reduction payments.
Growing opportunities
American DG Energy Inc (NYSEMKT:ADGE) intends to offer clean, cost-effective and highly efficient energy solutions. The utility provider expects approximately $1.5 billion market opportunity in Europe including ~$900 million annual electricity and $600 million of heat and hot water market.
The American DG Energy Inc (NYSEMKT:ADGE) will generate potential revenues due to the favorable factors like increasing energy prices, growing focus over green power, carbon incentives and lack of competition in the targeted market. The Company continues to expand its European operation while focusing on larger property holders and the National Health Services (NHS).
