Sungevity-Easterly deal scuppered by Trump win

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on 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, IBD’s 21-company-Solar-Energy industry group was down 8% at a nearly four-year low.

Read Next

PV Tech Premium
September 13, 2021
Following the release of the US Department’s Solar Futures Study, Liam Stoker assesses the downstream and upstream trends that must be realised for US solar to fulfil its potential.
August 25, 2021
The US renewables sector has welcomed the House of Representatives’ approval of a budget resolution that provides the framework for a US$3.5 trillion spending package.
August 24, 2021
Energy advisory DNV has acquired the consulting arm of Chile-based energy price forecaster Antuko, taking aim at the Latin America and Iberia power markets.
August 19, 2021
It may be the height of summer but there’s no respite for the Solar Media Podcast, the new episode of which is packed full of insight as the US begins its clampdown on solar imports.
PV Tech Premium
August 18, 2021
Liam Stoker recaps recent policy moves in the US and explores the difficult balancing act President Biden must now face between stimulating domestic solar manufacturing in the US and supporting solar deployment.
August 18, 2021
Reports have emerged alleging that US officials have begun detaining solar module shipments suspected of infringing the withhold and release order (WRO) implemented in June.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021
Solar Media Events
October 19, 2021
Solar Media Events
December 1, 2021