Australian renewable energy company CBD Energy says it has signed an exclusive, world-wide license agreement with Westinghouse Solar, the company that it had once intended to merge with.
The collapse of the merger proposal earlier this year was one factor that caused CBD to suspend trade in its shares as it reviewed its plans to list on the Nasdaq stock exchange in the US. It says it still intends to pursue this listing.
In the meantime, it has signed an agreement to use the Westinghouse Solar brand – a shirt sponsor for the Central Coast A-League football team – for a period of 10 years, with an option for another 30 years.
CBD executive chairman Gerry McGowan said the agreement “marks an important milestone” for CBD and would help it promote and grow its solar business in Australia and internationally.
“As CBD progresses towards its US listing, this landmark agreement can only enhance our endeavours for CBD to gain market recognition as a global leader in the solar field,” he said in a statement.
It was reported in July of this year after CBD has planned to use the Westinghouse brand to reinvent itself on the NASDAQ stock exchange, but Westinghouse Solar pulled the pin on the project.
Previously, Westinghouse had planned to buy an 85 per cent stake in the Sydney based CBD energy in May of last year in hopes to drastically increase access to capital and support international growth.
Westinghouse Electric Corporation vice president Jim Davis said CBD has “demonstrated its ability to develop projects all over the globe and has “an entrepreneurial spirit” which will deliver significant value for both companies.
In a previous interview Gerry McGowan said that a merger with Westinghouse would give it access to innovative technology – it was the first to develop AC panels – a niche position in the US solar PV market, and greater access to capital to support its ambitious international growth, with wind and solar projects planned in Europe, Asia, Australia and now the US.