Alternus Clean Energy Announces Binding Terms for Acquisition of Leading storage and solution provider LiiON, LLC

Alternus Clean Energy, Inc. (“Alternus”, Nasdaq: ALCE), a growing international renewable energy provider, today announces the signing of binding terms with LiiON, LLC, (“LiiON”) a U.S.-based expert in advanced energy storage solutions. LiiON was founded in 2009 by a group of senior power quality experts with extensive backgrounds in engineering, marketing and sales of storage technology and services with large battery companies in the industry.

The acquisition marks a pivotal expansion for Alternus, strengthening its ability to deliver comprehensive renewable energy solutions to energy-intensive industries. LiiON’s state-of-the-art battery technologies and engineering capabilities will enhance Alternus’ market and customer reach, enabling clients to achieve greater energy reliability, efficiency, and sustainability from their owned assets.

LiiON has a roster of blue-chip corporate and federal customers in data center, retail, telecom, and solar/wind enterprise markets, including Amazon, NASA and Walmart. Alternus plans to build on these relationships to help drive growth in its new microgrid market segment and will also form a new Battery Energy Storage (BESS) division to further its growing pipeline in utility storage. Existing LiiON revenues will become part of Alternus’ BESS division.

Alternus will pay $5 million using an asset purchase agreement, under which Alternus will acquire LiiOn’s customer contracts, service agreements and partnerships. LiiON will exclusively license its intellectual property to Alternus as applicable. Total consideration will be in the form and debt and equity whereby Alternus will issue a $2 million non-convertible loan note payable over three years and issue 250,000 shares of common stock on closing, reflecting an underlying share price of $12.00. Completion of the acquisition will immediately improve Alternus shareholder equity by approximately $3 million.

Vincent Browne, CEO of Alternus Clean Energy, said “This acquisition of LiiON is the first key step in pursuit of our strategy to become a more comprehensive energy provider, whether that be via utility scale solar, clean energy microgrids and other clean technologies. We are delighted that Gary and his team have chosen to join us on this journey and the confidence they placed in our business plan. LiiON’s innovative battery technologies perfectly complement our mission to make renewable energy more abundant, affordable and accessible and to allow us deliver on our vision of delivering energy 24/7. We look forward to building on the potential with Gary and his team going forward.”

According to the International Energy Agency’s findings from their World Energy Outlook 2024 report, the data center industry, a cornerstone of the global digital economy, is projected to grow significantly in the next decade, with energy consumption already representing approximately 1% of global electricity use. Advanced energy storage systems are essential for supporting corporations as they seek to achieve their carbon reduction.

Gary Gray, CEO of LiiON, LLC, added “We are thrilled to join the team at Alternus in this next phase of our collective growth and to capture the explosion in enterprise energy needs and carbon reduction goals. The energy storage market is a critical enabler of the clean energy transition, and LiiON’s systems are designed to deliver reliability and performance in even the most demanding environments. Together with Alternus and its partners, we are poised to make a meaningful impact on industries like data centers that are key to the global economy.”

The deal is subject to completing certain definitive agreements, and closing requirements, standard to these asset acquisitions, and is anticipated to be to complete in and prior to the end of current fiscal year 2024.