Update: Purchase Price Disclosed For Acquisition Of Texas Retail Provider

The Chron Organization, Inc. has filed a Form 10 Registration Statement with the U.S. Securities and Exchange Commission, and in such document, the company disclosed the purchase price for its acquisition of a Texas retail electric provider

As first reported by EnergyChoiceMatters.com, The Chron Organization, through Zen Energy, agreed to acquire Enertrade Electric, LLC, a Texas-based retail electric provider doing business as Shyne Energy.

Click here for background on The Chron Organization, whose leadership includes several retail market veterans

In the Form 10, The Chron Organization reported that it is in the final stages of completing its acquisition of Enertrade Electric.

Chron said that, on January 20, 2017, the company’s wholly owned subsidiary, Zen Energy, entered into an agreement to acquire 80% of Enertrade Electric, LLC.

The purchase price for the interest in Enertrade is $1,500,000 with the initial payment of $500,000 at closing (subject to certain adjustments that may increase or decrease the initial amount) and a $1,000,000 promissory note without interest (subject to be adjusted downward for any increase in the initial payment) and payable in two equal installments, the first of which is due 90 days from the closing date and the second due 180 days from the closing date.

Conditions precedent to closing the transaction include, but are not limited to, (i) the sellers obtaining all material consents, approvals, permits, authorization from, notifications to, and filings with any governmental entities including, without limitations, the Texas PUC and (ii) all approvals, consents and waivers shall have been obtained from Enertrade’s wholesale supplier. Chron said that it has received the approval of the Texas PUC for the acquisition.

Chron was obligated to close this transaction no later than March 21, 2017. Chron said that although Chron did not close by this date, the parties have continued to pursue obtaining the required consents in cooperation with Enertrade and the sellers and have an oral understanding with such parties to extend the closing date while pursuing such consents.

Chron also reported that, as partial consideration for the sellers’ retention of an interest in Enertrade, the sellers or their principals agreed to enter into a services agreement pursuant to which the sellers shall be obligated to present to Chron all opportunities to provide retail electricity and electric services to residential and commercial consumers within the Republic of Mexico as and when such opportunities arise and pursuant to which Chron will agree to purchase electricity supply to service such Republic of Mexico business opportunities accepted by Chron subject to credit terms established by its supplier.