Home » Finance » Esoft yet to achieve financial closure for Solar CSP project:Global Ecology Corporation issues update

Esoft yet to achieve financial closure for Solar CSP project:Global Ecology Corporation issues update

As Panchabuta has earlier mentioned, Esoft currently has a memorandum of understanding (MOU) for the building of a 6 megawatt solar power plant. Esoft will assign the MOU to GEC Energy Corp. and provide the necessary financing. To launch the project, Esoft and its affiliate, Rubious Industries, have received working capital lending terms from a prime bank for a credit facility in the amount of $2.5 million.

GEC Energy Corp. also will market Global Ecology’s environmental restoration technology throughout India. In addition, the chairman of Esoft, Vivek Sinha, will have an option to purchase 5 million shares of Global Ecology common stock at $0.50 per share.

Earlier, according to reports, Esoft Informatics had been in discussions with Bergamo Acquisition Corp for implementation of up to 200MW of Solar thermal hybrids. It is unclear if the deals with Bergamo Acquisition Corp has been finalized.

According to a release today, Peter Ubaldi, President & CEO of Global Ecology Corporation (OTCQB: GLEC), today issued the following letter to the company’s stockholders and the investment community:

“Since entering into a Letter of Intent on March 4, 2011 with Esoft Informatics of Noida, India, we have elected to extend our agreement in order for them to complete their funding of our joint venture subsidiary, GEC Energy Corporation.

“Subsequently we received confirmation that the irrevocable, transferable Standby Letter of Credit (SBLC), issued by an S&P AAA Rated Trust, which is the core of the transaction, has been confirmed for transfer to Esoft’s prime bank in India from a top 25 corresponding bank of the Trust.

“The amount of this unconditional SBLC is $3,000,000 and Esoft will be given the right to immediately draw down $2,500,000. From this amount, Esoft will provide the initial working capital for GEC Energy Corporation and will pay Global Ecology Corporation $500,000 for the right to purchase Global Ecology restricted stock at a later date. A portion of the funding will be used by Esoft to secure bank responsibility for additional SBLCs to finance the solar energy projects to be developed in India by GEC Energy and to deploy our existing environmental remediation technologies.

“As we reported previously, we are moving forward with the necessary documentation and as soon as the final bank responsibility is received via Swift MT760, the funding will take place. However, we can provide no assurances that we will be able to consummate the proposed transaction. Funding for this venture and the associated financial instruments continues to be the responsibility of Esoft. We will keep you updated with new developments as they become known. Thank you.”

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