Global Ecology Corporation (OTCQB: GLEC) announced today that it has executed a Letter of Intent with Esoft Informatics, Pvt. Ltd., of Noida, India for the development of a solar thermal project in India.
Under the terms of the agreement, Global Ecology will form a U.S. subsidiary, GEC Energy Corporation, to be jointly owned by Esoft and Global Ecology.
Upon completion of definitive documents, GEC Energy Corporation will be assigned the rights to a $25 million Standby Letter of Credit from a AAA rated U.S. trust which will assist GEC Energy Corp. to secure funding for the purpose of developing its first thermal solar energy project in India.
Esoft currently has a memorandum of understanding (MOU) for the building of a 6 megawatt solar power plant. Esoft will assign the MOU to GEC Energy Corp. and provide the necessary financing. To launch the project, Esoft and its affiliate, Rubious Industries, have received working capital lending terms from a prime bank for a credit facility in the amount of $2.5 million.
GEC Energy Corp. also will market Global Ecology’s environmental restoration technology throughout India. In addition, the chairman of Esoft, Vivek Sinha, will have an option to purchase 5 million shares of Global Ecology common stock at $0.50 per share.
Shannon Newby, Esoft’s investment advisor, said, ‘The formation of GEC Energy Corp. will greatly enhance the value of the projects being considered in India. The size of this endeavor and the ability to access the public markets through Global Ecology is an attractive combination.’
Peter Ubaldi, president & CEO of Global Ecology, said, ‘We are continuing to implement our strategy of seeking quality partners worldwide to market our technology and develop new environmentally friendly opportunities. Our discussions with Esoft are in the final stages and we are excited about this venture and confident of its success.’