Etrion Corporation

Etrion Corporation

September 14, 2009 07:00 ET

PetroFalcon Closes Acquisition of Solar Resources, Renames Company Etrion Corporation and Changes Ticker Symbol to ETX

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2009) - Etrion Corporation, formerly PetroFalcon Corporation ("Etrion" or the "Company") (TSX:PFC), has closed the previously announced acquisition of 90% of the outstanding shares of Solar Resources Holding Sarl ("SRH"), a private renewable energy company, from Lorito Holdings Srl ("Lorito") and other parties.

At the Company's Annual and Special Meeting ("AGM") on September 10, 2009, disinterested shareholders approved certain aspects of the acquisition of SRH, and the following board members were elected: Ian Lundin (Chairman), Ashley Heppenstall, John Craig, Clancy Cottman and Marco Northland.

Following the AGM, the Company completed the acquisition of 90% of SRH at cost for 2.3 million Euros (US$3.4 million) in cash. Etrion also advanced a loan to SRH in the amount of 1.35 million Euros (US$2.0 million) in order to repay an equivalent amount advanced to SRH by Lorito. Lorito is an investment company wholly owned by a Lundin family trust. The remaining 10% of SRH continues to be held by Mr. Northland.

Concurrent with the closing of the acquisition, the name of the Company was changed to "Etrion Corporation", and Mr. Northland was appointed as CEO of the Company. The common shares of the Company will commence trading on the Toronto Stock Exchange under the new symbol "ETX" on or about September 16, 2009.

Marco Northland, the Company's new CEO, commented, "I am pleased to close the acquisition, and I look forward to growing Etrion as an independent power producer in the renewable sector. Etrion will initially focus on building, owning and operating solar energy projects in Europe where government guaranteed premium electricity rates and non-recourse bank financing create attractive returns. Our first solar power plants in southern Italy are anticipated to begin operation in 2010. Etrion is well positioned to become a global renewable business with our pipeline of development projects, our strong net cash position and the financial support of our major shareholders."

The initial Italian solar projects are expected to be funded more than 80% by long-term non-recourse loans from an Italian bank, with the balance funded by the Company. Construction is estimated to last six to nine months, and the first electricity sales are expected during the third quarter of 2010.

About the Company

Etrion Corporation is a Canadian company based in Geneva, Switzerland and listed on the Toronto Stock Exchange (new ticker symbol "ETX"). The Company is focused on developing, financing, building, owning and operating global electrical power plants based on renewable sources of energy, including solar photovoltaic, solar thermal and wind. Etrion continues to own oil and gas investments in Venezuela acquired by PetroFalcon Corporation.

The Company is owned 45% by Lundin Petroleum, a Swedish independent oil and gas company traded on the Nordic Exchange (ticker symbol "LUPE"), approximately 10% by Vinccler CA, a Venezuelan construction firm specializing in large infrastructure projects, and approximately 9% by the Lundin family through various trusts.

Forward-Looking Information:

This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the anticipated bank financing, the duration of construction on the initial solar projects in Italy and the timing of the expected sales of electricity) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the failure to close the bank financing and to begin construction on the Italian projects in a timely manner and the failure to begin selling electricity in a timely manner.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Contact Information

  • Etrion Corporation
    Garrett Soden
    Chief Financial Officer
    +41 (22) 715 20 90
    +41 (22) 715 20 99 (FAX)