Fourth Wave Energy, Inc.(OTCQB: FWAV) (“Fourth Wave” or the “Company”), a Silicon Valley based climate change solutions company, announced that its board of directors has approved and is preparing to implement the spin-off of its smart home technology subsidiary, GeoSolar Technologies (“GST”). Once complete, the transaction will form two separate and independent publicly traded companies.
As part of the spin-off agreement with Fourth Wave, GST will receive all commercial rights to the GeoSolar Plus technology and patents in exchange for the issuance of approximately one share of GST common stock for each 4 common shares of Fourth Wave.
The shares of GST common stock will be issue do current Fourth Wave shareholders, subject to a successful transaction close and other considerations. Fourth Wave shareholders will continue to retain their shares in the Company.
The GeoSolar Plus (“GSP”) system is designed to significantly reduce energy consumption and associated greenhouse gas emissions in residences and commercial buildings, while improving indoor air quality by improving the building envelope, reducing energy loads, and generating on-site renewable solar energy. The GSP system is comprised of a number of system components including solar/PV and geothermal and produces more clean energy than it produces with no carbon.
GST plans to move its headquarters to Arvada, Colorado there it will concentrate on the development of a national sales program to market the GeoSolar Plus system for new and existing homes.
GST has also assembled a robust management team with both solar and geothermal and capital markets experience. Veteran public company executive and former Chairman and CEO of Piper Aircraft Company, Stone Douglass, has been appointed CEO of GST. He will be joined by Kevin Garvin, a former regional Marketing Director for Tesla/SolarCity (TSLA) for ten years, who will be Director of Business Development
Residential and commercial buildings create approximately 30% of all greenhouse gas emissions and have become a major target of climate activists on the path to a low or zero carbon future. Only 3% of the 80 million homes in the U.S. have been converted to solar powered clean energy,
“Now is the ideal time for this strategic spinoff, allowing both companies to participate in the dynamic growth in the coming Green Revolution.” Stated Joseph Isaacs, CEO of Fourth Wave. “We believe the GeoSolar Plus technology will make GST a very exciting public company and give Fourth Wave shareholders an opportunity to retain an important equity position in a second fast growing company.”
The spin-off of GST is subject to the effectiveness of a registration statement that GST will file with the Securities and Exchange Commission. The date for determining which shareholders of FWAV will receive shares of GST in the spin-off will be determined shortly before the effective date of GST’s registration statement. This Press Release is not an offer of any securities of GST and GST is not soliciting offers to acquire any securities of GST.
Fourth Wave Preparing to Acquire Solar Tile Company
In addition to the GeoSolar Technologies spin-off, Fourth Wave has entered into a Letter of Intent to acquire DeSol Power Tiles, a solar roof system provider that manufactures and installs a patented solar roofing system of tiles in lieu of traditional solar panels. Additional details can be found in the Company’s announcement press release issued in October. Fourth Wave is projecting the transaction will close in the first quarter of this year. It is expected that GST will become an important customer for the DeSol tiles in its retrofit projects.