Alternus Clean Energy Inc (NASDAQ:ALCE, OTC:ACLEW) announced the completion of the sale of certain of its special purpose vehicles to Alternus Energy Group Plc, the company's majority shareholder.
The transaction has allowed Alternus to shed approximately $30 million in debt and payables from its balance sheet, improving shareholder equity by around $4 million.
The sale is part of a broader debt-reduction strategy that has seen Alternus cut its total debt by roughly $130 million over recent months, resulting in an improvement in shareholders' equity exceeding $50 million, Alternus said in a statement.
The company has also divested non-core and economically unsustainable assets as part of its shift towards high-margin, high-equity-return segments within the clean energy sector.
Alternus is now expanding its operations beyond utility-scale solar, exploring opportunities in microgrids, battery storage, and other clean energy sectors.
In line with this shift, the company has relocated its headquarters from Fort Mill, South Carolina, to New York City, a move aimed at strengthening ties with financial partners and the broader investment community.
"The sale of these assets to AEG is another step in our broader effort to reduce debt, improve shareholder equity and position the company for growth,” CEO Vincent Browne said in a statement.
“Solidifying our position with Nasdaq is a crucial step in ensuring we have access to the equity capital we need to execute our strategy of evolving from an exclusive focus on utility scale solar to that of a more comprehensive energy provider going forward.”
Browne added that the move to New York will “put us close to the capital markets and investment community."