Science & Technology
Science and Technology
Science and Technology
Mon, February 23, 2009 Green St. Energy Enters into Option Agreement to Acquire 4,840 Acres of Property in Tehachapi, California
TEHACHAPI, Calif.--([ BUSINESS WIRE ])--Green St. Energy (OTCBB: [ MWAV ]) announced today that it has entered into an option agreement that provides it a three (3) year option to acquire 4,840 areas of land in Tehachapi, located in the County of Kern, California, a prolific area for the production of energy from wind. Green St. previously acquired 160 acres of land from the same property owner. There are approximately 10,000 wind turbines in the Tehachapi valley area, one of the highest concentrations of wind power generators in the US.
In consideration for being granted the option, the Company entered into an agreement with the land owner under which it issued a three-year $16 million 5% convertible debenture. The debenture is convertible into the Company's common stock at $0.5517 per share. In the event the Company exercises its option to acquire the land the purchase price will be no greater than the fair market value of the land as of the date of the option agreement. If it is determined that the fair market value of the property is less than the face value of the debenture, than the amount of the debenture will be reduced to reflect the fair market value of the property.
"While we were pleased by our previous acquisition of a small amount of acreage, we believe that the option to acquire a substantial amount of property in a prime location in Tehachapi positions Green St. Energy as a significant landholder in one of the most prolific wind production areas of the country," said Tony Cataldo, Green St. Energy's Chairman and CEO. "We look forward to developing this property, as we believe that Green St. Energy is now well positioned to become one of the leading participants in the wind power generation market."
We plan on obtaining the necessary permits to allow energy production on the 160 acres we have acquired. Due to the legislative environment, existing infrastructure including transmission lines and interest from construction and development partners, we are optimistic that we will be able to begin energy production quickly relative to properties located in other areas of the country. We are also actively focused on completing the acquisition of the balance of the acreage from this owner."
According to a report issued by 3TIER, a leading global energy assessment firm, the estimated power capacity factor at the location, a common assessment tool for wind farm viability, is 40%. This rating is considered excellent by industry standards. Many existing US wind farms have been financed and are being operated successfully at 28% to 30% capacity factors; thus, the Green St. Energy Tehachapi site rating by 3TIER indicates a wind power capacity that is approximately 33% greater than average standards for finance-able wind farms in the US market. The 40% power capacity rating is an annual average power capacity based on a turbine-type that is typical for the property.
About Green St. Energy
Green St. Energy has assembled a management team and advisory group with wind industry relationships with companies such as GE Wind, Vestas International, and the American Wind Energy Association. The company is poised to bring numerous high value assets into their renewable energy project portfolio over the coming 8 to 12 months. The firm can be contacted at: 123 Green Street, Suite 1000, Tehachapi, California 93561. CEO Anthony Cataldo can be contacted at: (310) 556-9688.
Additional details on the transaction may be found in the Company's 8-K filing. Actual results and the timing of certain events discussed herein could differ materially from those projected in or contemplated by forward-looking statements due to a number of factors, including but not limited to, the risk factors and other disclosures contained in M-Wave, Inc.'s n/k/a Green St. Energy Inc.'s annual reports on Form 10-KSB for the period ended December 31, 2007, and the other disclosures contained in documents filed by the Company with the Securities and Exchange Commission.
