Fonon Corporation (FNON) and Rinehart Development & Investment Group, LLC Reach Agreement for Fonon to Purchase 1.2MW Clean Energy Renewable Power Generating Facility

LAKE MARY, Fla., Sept. 11, 2015 (GLOBE NEWSWIRE) -- Fonon Corporation (‘Fonon’) (OTC:FNON) is pleased to announce the Company and Rinehart Development and Investment Group, LLC mutually signed a term sheet for Fonon to acquire, in exchange for cash and stock, an on-site clean-energy renewable power generating facility to support the company’s manufacturing expansion plan. The estimated fair market value of the power generating facility, based on a discounted cash flow model, is $9.8M. The 1.2 Megawatt solar farm is one of the largest “roof-top” power generating facilities in the South-East.

Key Features of the power generating facility:

  • 300,000 sq. ft. photovoltaic facility with total capacity of 1.2 megawatts
  • Estimated annual electricity production is 1.9 million kilowatt-hours
  • Projected savings over the life of the solar farm is estimated at $12.5M consisting of $1M in tax benefits plus $11.5M in projected revenue
  • Estimated fair market value of power generating facility at $9.8M

Wayne Tupuola, VP of Manufacturing commented, “The pending closing of the power generating facility purchase agreement represents another milestone accomplishment in the rollout of the company’s recently announced 2015 Reorganization Plan. As we expand our manufacturing footprint representing a future combined total of 274K sq. ft., the company should save up to $50K/month in facility expenses or almost $12.5 Million added to its bottom line. The acquisition is expected to increase stockholders equity by more than $5 Million Dollars.”

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Source:Fonon Corporation