Sungevity-Easterly deal scuppered by Trump win

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Sungevity CEO Andrew Birch. Source: Sungevity

Sungevity's plans for a reverse merger with shell company Easterly Acquisition Corp, part of Easterly Capital, were scuppered after investors doubted the value of solar following Donald Trump's election. The President-elect has publicly bashed the technology, branding it “so expensive”.

“We lost the attention of investors,” Sungevity CEO Andrew Birch said according to Reuters. “There is a good amount of uncertainty until Trump gets into office and his team starts describing what their policy plans are.”

The plan was for the Oakland, California-based rooftop solar company to be acquired by Easterly after the deal was confirmed in June. However, according to a US Securities and Exchange Commission filing on Tuesday, the transaction agreement was terminated on 31 December.

The reverse merger would have allowed Sungevity to list its shares as a public company in an attempt to spur growth and tap into a new base of customers, the company had said in June.

However, Easterly chairman Darrell Crate told Reuters that the company “concluded that it was not the right time to pursue a merger with Sungevity for a host of reasons, including changes in the marketplace regarding the valuations of renewable energy companies.”

Birch maintained that the election of climate sceptic Trump was a further blow to the investor view of solar and other renewable energies, while asserting that the deal falling through was not a reaction to Sungevity’s financial performance.

Solar stocks did crash on the breaking of the results in November; with SunPower, First Solar and SolarCity down a respective 13%, 6% and 5% in the early hours of trading of election day. According to stock market watchdog investors.com, IBD’s 21-company-Solar-Energy industry group was down 8% at a nearly four-year low.

Read Next

April 9, 2021
The US’ fleet of solar and wind generation capacity is set to almost triple over the next decade, but even this is not enough to meet President Biden’s ambitious decarbonisation targets, according to a recent BloombergNEF report.
March 25, 2021
Thin-film laser systems equipment supplier LPKF Laser & Electronics suffered from delays in receiving new expected orders from two long-stand customers last year.
March 23, 2021
Lightsource bp has been selected to build, own and operate seven solar arrays in Pennsylvania that will provide nearly half of the state government’s electricity.
March 4, 2021
A round-up of the latest solar project news from around the world, including updates from Hanwha Q CELLS and Capital Dynamics.
March 3, 2021
The Biden administration has supported former US President Donald Trump’s controversial decision to remove a tariff exemption for bifacial solar panel imports.
March 1, 2021
Xcel Energy has announced plans to double its renewables and battery storage capacity in Colorado by 2030, as the utility progresses with efforts to reach 100% carbon-free electricity generation across its service area by 2050.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 13, 2021
Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET