CHARLOTTE, N.C., Oct. 17, 2017 /PRNewswire/ -- Blue Sphere Corporation (OTCQB: BLSP) (the "Company", "Blue Sphere", "we", "our" or "us"), an international Independent Power Producer (IPP) in the clean energy and waste-to-energy markets, today provided an update to shareholders.
Shlomi Palas, Chief Executive Officer of Blue Sphere, commented, "Due to the long process and communication restraints surrounding our public offering and listing on the NASDAQ exchange, we have been limited in our ability to proactively communicate with shareholders. Additionally, as a result of certain delays in relation to this offering that were outside the Company's control, we elected to complete a self-underwritten offering during the second quarter of 2017, which generated $4.5 million in gross proceeds. This financing allowed us to, among other things, complete the acquisition of our plant in Udine, Italy as well as fund additional project development costs in Holland, Italy and the US. We believe this financing, that included very supportive long-term investors, provides the Company with a foundation to execute its strategy while building value for shareholders.
"We continue to believe that we must work to meet the standards for listing on a national exchange in order to put the Company in the best position to gain access to more efficient markets as well expanding the universe of potential investors. At this time, in order to continue the financing and listing process, we must file another S-1 registration statement. Conversely, we believe that we would likely need to file a further amendment to such registration statement because of the timing of our upcoming 10-Q report. With this most likely being the case, we feel that it is in the best interest of the Company and its shareholders to postpone this process, at least, until our next 10-Q report has been filed.
"We will use this time as an opportunity to further execute on a number of significant development milestones and begin to again, actively communicate our developments and progress through the issuance of press releases on a more regular basis, attending investor conferences and meetings, attending broker or analyst meetings and proactively marketing our story through the mainstream and financial media. We have been very active communicating through our filings. Since we last issued a press release, the Company has filed eight (8) S-1 or S-1/a registrations statements, one (1) 10-K, two (2) 10-K/a reports, two (2) 10-Q reports, thirteen (13) 8-K or 8-k/a reports and one (1) 424B3 Prospectus. Operationally, these filings show that we are making solid progress.
"Blue Sphere has built a foundation of waste-to-energy assets, including two projects in the U.S. and five in Europe, which can generate a combined 13.4 MW of electric power. Our current U.S. assets in North Carolina and Rhode Island, collectively are able to generate 8.4 MW of electric power and are projected to generate over $10 million of combined EBITDA per year; our ownership in these assets are 25% and 22.75%, respectively. Our Italian assets, which we own outright, collectively generate 5 MW of electric power and are projected to generate $5 million of combined EBITDA annually. Our flagship project in Holland, currently the largest anaerobic digester development in Europe for 2017, received a grant of €151 million and continues to make further progress. Once up and running, this project alone is expected to generate over $22 million in annual revenue. In addition to these key assets, the Company is developing sixteen other projects around the world that would be able to generate a combined output of over 60MW of power. We plan to describe these projects further in press releases or other upcoming Company presentations.
"We believe that Blue Sphere has built a highly scalable business model, with predictable, long-term revenue streams and cash flows. We are not pioneering new technologies, but rather deploying proven technologies that are able to achieve high internal rates of return. Our successes are due in large part to our extensive due diligence process, our ability to secure long-term power purchase agreements, our ability to secure project financing and our strong project management expertise. As evidence of our success, we have been able to attract high caliber partners such as Duke Energy, National Grid, GSE, SDE and Helios Capital Management to name a few.
"Looking ahead, we remain laser focused on driving value for shareholders, value that we believe has been expressed in the quality assets that we have assembled to date and the operating results that we are achieving. In the first half of 2017 alone, we achieved approximately $4.1 Million of positive net income, compared to a deficit of approximately $6.7 Million for the same period in 2016. Additionally, we continue to strengthen our balance sheet, our stockholders' equity increased to approximately $6.5 Million as of June 30, 2017, compared to a deficiency of approximately $2.2 Million at December 31, 2016. Overall, we are extremely excited about the outlook for the business and look forward to keeping our shareholders apprised as developments unfold."
About Blue Sphere Corporation
Blue Sphere Corporation is a diversified independent power producer that develops, owns, and operates clean-tech, waste-to-energy facilities in the United States and abroad. The Company primarily converts organic waste into electricity, but also has the ability to generate heat, natural gas and organic byproducts through various technologies.
Blue Sphere facilities eliminate waste that would normally be disposed in landfills, reduce greenhouse gas emissions and protect water quality, helping to solve important global environmental issues. Blue Sphere is headquartered in Charlotte, North Carolina and has operations in the United States, Italy and Holland and is developing projects in the US, the UK, Canada, Israel, Italy and Holland. For further information about Blue Sphere, please visit the Company's website: www.bluespherecorporate.com.
This press release contains certain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties and may change at any time. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors including, without limitation, (i) uncertainties regarding general economic and market conditions, (ii) uncertainties regarding changes in the clean tech sector, (iii) uncertainties regarding implementation of the Company's business strategy, and (iv) other risk factors as outlined in the Company's periodic reports, as filed with the U.S. Securities and Exchange Commission. As such, there is no assurance that the initiatives described in this press release will be successfully implemented or meet expectations. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events.
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SOURCE Blue Sphere Corporation