ReneSola and China Seven Star Holdings Limited, a Hong Kong listed company, have entered a framework agreement regarding a partnership in potential sales to China Seven Star of at least 200 MW of existing and new PV projects within 18 months. The parties subsequently signed a Memorandum of Understanding (MOU) which stipulates that ReneSola will sell to China Seven Star two utility-scale projects, both of which are completed and connected to the grid, with a total capacity of 9.7 MW in Bulgaria.
Under the terms of the Framework Agreement, China Seven Star seeks to acquire from ReneSola within 18 months no less than 200 MW of PV projects, including but not limited to four existing solar parks in Bulgaria and Romania. The series of PV project cooperation set forth in the Framework Agreement will begin with the sale of two utility-scale projects in Bulgaria by ReneSola to China Seven Star pursuant to the terms of the MOU, where China Seven Star will issue and allocate new shares to ReneSola in exchange for the entire shareholder equity of the project company. For each potential PV project sale under the Framework Agreement, including the Bulgaria projects specified in the MOU, ReneSola and China Seven Star will enter into a separate agreement.
"We are excited to commence our cooperation with China Seven Star," said Mr. Xianshou Li, ReneSola's chief executive officer. "The potential sales of the two utility-scale projects in Bulgaria and additional projects comprising a total of 200 MW represent a continuation of our strategy of selectively developing solar power projects. We wish to be involved in the full cycle of PV project development, while continuing to maintain our capital and debt controls and to improve our overall financial position."
Mr. Xinggua Ni, chairman of China Seven Star, said, "We are delighted to enter into this partnership with ReneSola. We believe ReneSola can bring along its technological expertise and experience in the PV project development, which will accelerate our growth in the downstream solar market. "
The framework agreement and the MOU do not constitute final agreements. With specific provisions relating to the sales of projects still to be agreed to, there is no assurance that any sale of PV projects will be completed.