GreenHunter Renewable Power, a subsidiary of GreenHunter Energy, has finalised the sale of its 14MW biomass power plant in Florida, US.
The company received $5.7m in cash from Multitrade Telogia for the utility, which included the assumption of roughly $1.7m in debt. GreenHunter Renewable Power originally paid $2.5m for the wood waste-fired plant.
Gary C Evans, chairman, president, and CEO of GreenHunter Energy said, ‘The sale of this non cash flow-producing asset will allow our company to improve our liquidity position as well as redeploy our capital in a more efficient manner. In less than a six month period, GreenHunter was successful at achieving a rate of return of approximately 60 per cent on this asset.
‘We continue to evaluate new market opportunities for acquiring existing, cash flow-producing assets within the renewable energy space that are very attractive. By having a diversified portfolio of alternative energy assets, we are able to quickly concentrate management’s efforts on any one particular segment that offers the greatest returns on capital employed. Our goal is to become cash flow positive with each asset we own so as to minimise any potential future dilution to our existing shareholders during this very difficult period in the capital markets.’
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