We would like to thank the over 330 investors to date who have joined to help Sun Fund fight climate change. We have made significant progress in 2018 and are working toward to a profitable 2019.
Sun Fund will be closing its current Start Engine offering on December 31 which is in three days.
We would like our existing investors to consider adding to their existing investments and encourage our over 1,000 followers to take this final opportunity to invest in this current offering this weekend.
What follows is update of where we are now at the end of 2018 and where we are looking to go in 2019.
Sun Fund will be publishing and filing our 2018 audited financial statements and annual report in January. At this point, we anticipate reporting a positive EBITDA from our first full year of operations and we expect to announce our first quarterly dividend for all shareholders of record as of December 31, 2018. We also expect to provide forward revenue guidance for 2019 beginning in January.
Our primary mission at Sun Fund is to fight climate change by reducing greenhouse gas emissions. We develop and build solar power generation projects that replace fossil fuel systems. We are developing an asset-backed security token and associated blockchain technology to bring innovative financial technology solutions to the renewable energy market.
We are pleased to report that Sun Fund has made significant progress in 2018.
Highlights from 2018 for Sun Fund include:
•Building and commissioning our first 30 kilowatts of solar capacity that we will retain for long term ownership along with all associated tax benefits.
•Closing on the sale of 99% of our interest in 155 kilowatts of solar projects in a solar tax equity investment transaction. This transaction is closing on December 31 and the majority of revenue from this sale are projected to be earned and recognized in the first quarter of 2019.
•Negotiating commercial terms for the sale of our interest in a 2.6 megawatt community solar project to a regional utility. This transaction is expected to close in January 2019 and sales revenue is expected to be earned and recognized throughout 2019
•Executing lease-option agreements for 145 megawatts of solar projects in the New England region. These lease options will provide for future Sun Fund projects that will be jointly developed with strategic partners in 2019 and 2020.
The primary challenge faced by Sun Fund management was that cryptocurrency markets imploded in early 2018 as the majority of unregulated tokens and currencies were revealed to be either fraudulent or without value. The Sun Fund management team elected to hold off on a token offering until the market settles and stabilizes. A major goal of Sun Fund is the creation of a securitized token offering backed by renewable energy assets was to bring liquidity to our markets.
Our vision for our token – the Sunny – is that it will become a new financial product that will simultaneously act as a currency, a security and a commodity. Because the current regulatory structure for this type of financial instrument does not yet exist, Sun Fund has chosen to start with a securitized token legal structure in order to be in compliance with US securities laws. Over time, we believe that the regulatory structure will develop to allow these tokens to be used as a currency for payments. This liquidity will then bring funding to renewable energy projects that will replace fossil fuels and reduce greenhouse gas emissions. At the same time, regulated exchanges are completing the regulatory approval process to provide exchange where our asset-backed security token can be traded in a liquid market.
Going forward, management is preparing to launch our asset-backed security token under a new equity offering expected in 2019 that will be a Regulation A+ Tier 2 offering. This offering requires advanced approval by the SEC and will most likely take four to six months to be approved and ready to launch. We expect this offering to be our regulated securitized token offering that will be tradeable on exchanges that will most likely be approved over the next six months as well.
Shareholders in this existing offering will be give two options when the next offering is launched: Option one would be to retain your existing shares with the minimum annual 6% dividend and also receive an equivalent number of shares of the new offering. Option two will be to convert your existing shares to the new offering shares and also receive an equivalent number of shares in the new offering. This is all pending SEC approval of the new offering. The main benefit to shareholders is liquidity because the new securitized tokens will be tradeable when the new exchanges are launched.
Of course, we have to add here that all aspects of the proposed new offering and new exchanges are based on the plan for Sun Fund and there is no guarantee of the timing of the new offering or the new exchanges because that is based on regulatory review and approval.
Thank you for being a part of the Sun Fund community.