SunEdison (SUNE) Begins Construction of Colorado Solar Project, CEO Buys Shares
Shares of SunEdison Inc. (SUNE) were trading up +0.65 or +6.31 percent to $10.95 in Monday's premarket after the company filed a Form 8-K with the SEC stating that the company's Chief Executive Officer had purchased shares of SunEdision in the open market. The company also announced it had begun construction of the Comanche Solar project in Pueblo, Colorado. SunEdison shares closed at $10.30, up +0.20 or +1.98 percent in Friday's regular trading session.
Maryland Heights, Missouri based SunEdison Inc. is a world class alternative energy company that is revolutionizing the way energy is owned, generated and distributed.
SunEdison announced in July that it would acquire Vivint Solar (VSLR) for $2.2 billion. SunEdison stock was up almost nine percent last Tuesday after rumors that the company might walk away from the takeover. Vivint is the third largest residential solar installer in the United States.
The SEC Form 8-K filed this morning revealed that Ahmad Chatila, President and Chief Executive Officer of SunEdison had purchased 9,700 shares of the company's common stock in the open market. Mr. Chatila currently holds 300,000 shares of SunEdison which he paid for using personal funds. In the Statement of Changes in Beneficial Ownership filed with the 8-K, Mr. Chatila beneficially owns 845,672 shares of SunEdison.
In addition to the stock purchase, SunEdison announced it had closed $253 million of financing and broke ground on its Comanche 156 Megawatt DC/120 MW AC Solar Project in Pueblo, Colorado. SunEdison acquired Comanche Solar in 2014. When completed, the Comanche Solar Project will be the largest solar power plant east of the Rocky Mountains.
The plant will be the largest in Colorado, generating over 300 gigawatt hours of energy yearly with enough power to provide energy for approximately 30,000 Colorado homes. The solar plant will save over 478 million pounds of carbon dioxide emissions, the same as taking 45,000 automobiles off the road.
Paul Gaynor, SunEdison's Executive Vice President for EMEA and the Americas said in the company's press release that, "The Comanche Solar project demonstrates SunEdison's ability to deliver renewable energy at a price competitive with conventional resources. In addition, the Comanche Solar project will be financed through SunEdison's $1.5 billion non-recourse, First Reserve Warehouse. This facility is designed to expand as projects move into construction without incremental equity contributions by SunEdison."
SunEdison stock has been pummeled since it announced it would acquire Vivint Solar in July. The stock was trading in the low $30s before the announcement. In addition, the stock was hammered last week after UBS analyst Julien Dumouli-Smith downgraded the stock to "neutral" and cut his target price from $20 to $11. The analyst said that he "cannot recommend investors attempt to catch a falling knife".
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