Fonon Corporation (FNON) and Rinehart Development & Investment Group, LLC Reach Agreement for Fonon to Purchase 1.2MW Clean Energy Renewable Power Generating Facility
Over the projected life of the power generating facility, Fonon expects to save $12.5M
Lake Mary, Florida, September 10th, 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.”
To learn more about Fonon Corporation, visit: https://fonon.us
About Fonon Corporation
Fonon Corporation is the recognized leader of industrial-grade 3D Additive and Subtractive laser-based material processing systems. Our systems are used world-wide in the semiconductor, flat panel display, automotive, aerospace, industrial, defense, electronic and medical industries with a portfolio of intellectual property, knowhow & inventions placing our company in the unique position to offer both standard 3D material processing systems or our specialty of tooling 3D laser-based transforming systems designed around the unique applications of our customers.
About Rinehart Development & Investment Corporation
Rinehart Development & Investment Group, LLC (RDI) is a Central Florida real estate investment group and the landlord of the manufacturing facility leased by Fonon Corporation. RDI is located in Lake Mary, FL and owns a number of prime manufacturing, retail, entertainment and warehouse facilities throughout Central and North Eastern Florida in its portfolio.
Notice Regarding Forward-Looking Statements:
NOTE: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 involving risks and uncertainties. Results, events and performances could vary from those contemplated. These statements involve risks and uncertainties which may cause results, expressed or implied, to differ from predicted outcomes. Risks and uncertainties include but are not limited to product demand, market competition and the company’s ability to meet current and future plans. Investors should study and understand all risks before making an investment decision. Readers are recommended not to place undue reliance on forward-looking statements or information. Fonon is not obligated to publicly release revisions to any forward-looking statement, to reflect events or circumstances afterward, or to disclose unanticipated occurrences except as required under applicable law.