Texas REP Acquires Retail Supplier
November 8, 2017 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
Summer Energy Holdings, Inc., the parent of Texas retail provider Summer Energy, on November 1, 2017, entered into a Membership Interest Purchase Agreement with REP Energy, LLC, whereby Summer Energy Holdings acquired 100% of the issued and outstanding units of membership interest (the "Interests") of REP Energy from the members of REP Energy
REP Energy, a retail electric provider operating in the Northeastern U.S., holds licenses in Massachusetts, New Hampshire and Connecticut and currently serves over 4,000 residential and commercial customers.
Neil Leibman, CEO of Summer Energy, stated, "We believe this acquisition provides the opportunity to grow into several key markets. REP Energy has established relationships which will be a great addition to our current Marketing efforts as well as provide our Texas brokers cross-selling opportunities in additional states."
The purchase price paid for the Interests consisted of 2,177,912 shares of Summer Energy Holdings, Inc.'s common stock, which was the number of shares having an aggregate value of $3,266,867, with the price per share equal to $1.50 per share of Summer Energy Stock, rounded up to the nearest whole number of shares. Such amount was determined by the board of directors of Summer Energy Holdings, Inc. in good faith as the fair market value of a share of Summer Energy Stock. The purchase price also reflects REP Energy's outstanding debt obligations totaling approximately $767,677, as well as $65,000 in cash drawn on a line of credit.
Several of the members of REP Energy are officers and/or directors of Summer Energy Holdings, Inc., including: Angela Hanley, President of Summer Energy Holdings, Inc.; Neil Leibman, Chief Executive Officer and a director of Summer Energy Holdings, Inc.; Jaleea George, Secretary, Treasurer, Chief Financial Officer and a director of Summer Energy Holdings, Inc.; and Tom O’Leary, a director of Summer Energy Holdings, Inc..
The conflicts of interest of Ms. Hanley, Mr. Leibman, Ms. George and Mr. O’Leary were disclosed and known to the board of directors of Summer Energy Holdings, Inc. The terms of the purchase agreement and the transaction were negotiated, considered and approved by a majority of the disinterested members of the board of directors of Summer Energy Holdings, Inc.