Green St. Energy has entered into an option agreement that provides it a three-year option to acquire 4,840 acres of land in Tehachapi, Calif., for wind development. The company previously acquired 160 acres of land from the same property owner.
In consideration for being granted the option, the company entered into an agreement with the landowner under which it issued a three-year, $16 million, 5% convertible debenture.
The debenture is convertible into the Green St. Energy's common stock at $0.5517 per share. In the event the company exercises its option to acquire the land, the purchase price will be no greater than the fair market value of the land as of the date of the option agreement. If it is determined that the fair market value of the property is less than the face value of the debenture, then the amount of the debenture will be reduced to reflect the fair market value of the property.
‘While we were pleased by our previous acquisition of a small amount of acreage, we believe that the option to acquire a substantial amount of property in a prime location in Tehachapi positions Green St. Energy as a significant landholder in one of the most prolific wind production areas of the country,’ says Tony Cataldo, Green St. Energy's chairman and CEO.
The company plans to obtain the necessary permits to allow energy production on the 160 acres that have been acquired.
SOURCE: Green St. Energy