SINGLEPOINT INC. PHOENIX, Oct. 13, 2020 /PRNewswire/ -- Direct Solar of America, LLC ("Direct Solar"), a majority owned subsidiary of SinglePoint Inc. (OTC: SING), today announced that it has finalized an agreement with the principals of Standard Eco, a developer and installer of grid-tied solar electric systems in Texas, Illinois, and Arizona, to create multiple licensed entity in order to leverage the recent rapid expansion of Direct Solar of America's national solar footprint to 38 states, an increase of 30+ states since May 2019 acquisition by SinglePoint Inc.
As previously announced via an LOI in July 2020, Direct Solar of America and SinglePoint Inc. begun due diligence related to the previously announced LOI. The parties reached a final agreement based upon the outcomes and completion of that phase. The original transaction was expected to close no later than December 2020 and was based primarily on Standard Eco's ability to continue to deliver revenue and profitability results in 2021, 2022, and 2023 comparable with the previously reported unaudited revenues of $12,331,703 in 2018 and $11,345,061 in 2019.
This strategic transaction, the first in what is designed to be a series of multiple transactions, is comprised of cash (facilitated through Direct Solar of America) and incentive-based stock compensation to be issued upon reaching definitive operational milestones in addition to revenue and profitability thresholds within certain territories and timelines. This will immediately broaden the combined service offerings Direct Solar of America currently provides.
"We've had a tremendous period of growth at Direct Solar of America since a majority interest was acquired by SinglePoint Inc. in May 2019," stated Pablo Diaz, CEO - Direct Solar of America "We added new divisions in commercial and capital to augment our leading solar brokerage network and now with the finalization of this agreement we can fully capitalize on the partnerships and relationships we have built while adding 30+ states to our network in a little over a year. We anticipate continuing to leverage our national solar network to add licensed solar installation groups that will increase our revenue and profitability as we look to capitalize on the increasing demand for energy solutions powered by solar over the next decade."
"This transaction immediately increases the value of Direct Solar of America and provides a framework for continuing to acquire or partner with strategically important entities within the solar and alternative energy sector as we look to rapidly build a national solar installation network via roll up or joint venture strategy. We will continue to target accretive companies within the Solar and Renewable Energy space that can benefit from our national footprint and meet our previously announced acquisition strategy. Our goal is to become the national leader in residential and commercial solar solutions operating in all 50 states," Wil Ralston, President - SinglePoint Inc. "We look forward to continuing to assist with enhancing the value of our majority owned subsidiary, Direct Solar of America and supporting the strategic vision outlined by their senior management."
The recent and continuing expansion of Direct Solar's sales platform now covering 38 states, allows the company to reach more households and raise awareness about the benefits of home solar and battery storage solutions which continue to drive the market for residential and small commercial customers. The Direct Solar specialized concierge sales approach provides an immediate cost savings for independent installers who typically would resort to hiring expensive door-to-door sales professionals. We will continue to target smaller ($5M - $15M in annual revenue) solar installation companies, similar to Standard Eco, that can benefit by partnering or combining through acquisition with a leading virtual specialized sales platform like Direct Solar.
A consolidation phase in the domestic residential solar market has recently begun with the combination of Vivint and Sun Run in a merger that was announced on July 15, 2020 in which Sun Run acquired Vivint for a reported $3.2 billion. One of the key components of that deal was the value of having a high-quality sales channel. It is estimated that the Sun Run – Vivint combination will create an entity that has about 15% of the current residential market share in the US. It is estimated that Residential Solar in the US has only reached 3% penetration. In 2019 nearly 40% of all new electricity was added by solar-centric solutions. The global solar energy market was valued at $52.5 billion in 2018 and is projected to reach $223.3 billion by 2026, growing at a CAGR of 20.5% from 2019 to 2026. After a strong 2019 Q4 and a record Q1 of this year, residential solar installations were hampered in Q2 by work stoppages, delays and temporary muted consumer demand caused by the complications of the current pandemic and corresponding economic shut downs which is accounting for the industry forecast of a 25% year-over-year drop in residential solar installations. Residential Installation has since begun to see a rebound in consumer demand and is set to resume growth in 2021.
About SinglePoint, Inc.
SinglePoint Inc. (OTC: SING) is a fully reporting company with core holdings in Solar Energy Services. Acquired in May 2019, Direct Solar of America, a majority owned subsidiary, now operates its leading national solar sales brokerage model in 38 states. In the past year Direct Solar of America has virtualized its sales platform, has added and expanded its corporate offerings to include Direct Solar Capital (Financial) and Direct Solar Commercial with a focus on financing, designing or developing small to mid-size commercial opportunities and projects. The Company has a portfolio of non-core focused business that are searching for strategic partnerships or other alternative solutions. SinglePoint is committed to positioning the Company to be able to up list to the highest exchange possible which we feel is a benefit to our stakeholders and shareholders.
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Forward-Looking Statements
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Technical complications, which may arise, could prevent the prompt implementation of any strategically significant plan(s) outlined above. The Company undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
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