Nexentis Technologies Inc. (NASDAQ:NXTS) shares advanced 10% on Monday after the company announced the partial monetisation of its investment in the Melz solar project in Germany, based on a project valuation of US$14.5 million.
The drug discovery company, which also maintains investments in renewable energy assets, has signed an addendum to its Loan and Partnership Agreement with Solterra Renewable Energy Ltd. and the project’s lending group. The revised agreement values the Melz solar photovoltaic development at US$14.5 million, representing an uplift from Nexentis’ original investment.
Transaction Unlocks Early Returns
As part of the agreement, Nexentis will receive an early repayment of approximately US$147,000, including accrued interest, on its share of the project loan.
The company will also receive US$98,000 from the sale of 10% of its profit rights, equivalent to a 2.5% interest in the project’s future profits. In addition, Nexentis will collect a further US$22,000 as an option fee granting the purchaser the right to acquire its remaining profit rights once the project reaches Ready-to-Build (RTB) status, based on an independent valuation carried out by a Big Four accounting firm.
Melz Project Continues Development
The updated agreement follows the sale of Solterra Renewable Energy Ltd. and its assets to Sunflower Sustainable Investments Ltd., a transaction that prompted Solterra to make early partial repayments under the existing loan arrangements.
The lending syndicate, in which Nexentis is the largest participant, committed approximately US$2.95 million to support the development of the Melz project through to RTB status. Nexentis’ share of that funding totals around US$2.18 million.
The Melz solar project, which is expected to have a generation capacity of between 111 MWp and 115 MWp, continues to progress through the development phase. The latest transaction implies a valuation of approximately US$120,000 per megawatt.