NEVE YARAK, Israel - N2OFF, Inc. (NASDAQ: NITO), a clean technology company, has announced its first foray into the European solar photovoltaic (PV) market through a partnership with Solterra Renewable Energy Ltd. The initial venture is a 111 MW solar project in Melz, Germany, marking a significant step for N2OFF into sustainable energy solutions.
The collaboration involves an investment of up to €8 million to fund various solar PV projects, with N2OFF and a group of private investors committing €2.08 million to the Melz project. This project has already received municipal approval and is under consideration for grid connection by a major regional energy service provider in Germany.
David Palach, CEO of N2OFF, expressed confidence in the venture, citing the growing global demand for alternative energy solutions. Solterra's CEO, Yair Harel, highlighted the market's high demand for Ready-to-Build (RTB) projects, suggesting that the partnership could yield substantial value for both companies' investors.
Founded in 2022 by energy sector veterans Eran Litvak and Yair Harel, Solterra is active in Italy, Poland, and Germany, managing a solar PV portfolio with a cumulative capacity of approximately 300 megawatts. The global solar PV market, valued at $150 billion in 2022, is expected to reach over $383.78 billion by 2032, growing at a CAGR of 9.90% from 2023 to 2032, according to Precedence Research.
The agreement provides N2OFF and its investors with up to 50% of the net earnings rights from the Melz project, with a 7% annual interest on the loan. It also includes a right of first refusal for future investments in additional projects up to €6 million.
N2OFF's involvement in the solar PV sector complements its commitment to sustainable energy and agri-tech solutions, including its subsidiary NTWO OFF Ltd., which focuses on reducing nitrous oxide emissions. This move is part of the company's broader strategy to create reliable revenue streams by financing carefully selected projects in the renewable energy space.
The information reported is based on a press release statement from N2OFF, Inc.
In other recent news, N2OFF Inc. has made significant strides in the clean energy sector by investing in a solar photovoltaic (PV) project in Melz, Germany. The company, in collaboration with private investors, has committed a loan of €2.08 million to the project, marking its first venture into the solar sector. The Melz solar project has already received municipal approval and an indicative grid connection solution from a prominent regional energy service provider in Germany. This development is part of N2OFF's strategy to establish a steady revenue stream by financing carefully selected projects.
In addition to this, N2OFF has also announced a strategic expansion into the solar PV market through a partnership with Solterra Renewable Energy Ltd. The global solar PV market, valued at $150 billion in 2022, is projected to reach over $383.78 billion by 2032, making this partnership a potentially lucrative venture for N2OFF.
Furthermore, N2OFF shareholders have approved a reverse stock split, with the board now having the discretion to determine the exact ratio and timing of its implementation. However, a proposal to increase the number of authorized shares of capital stock from 500 million to over 10 billion did not receive the required majority approval. These recent developments are part of N2OFF's ongoing corporate restructuring plans.
InvestingPro Insights
N2OFF, Inc. (NASDAQ: NITO) is making headlines with its strategic move into the European solar PV market, and investors are keen to understand the financial health and future potential of the company. According to InvestingPro data, N2OFF holds a market cap of 1.02 million USD, which positions it as a small-cap player in the clean technology sector. Despite the company's ambitious expansion, it's important to note that N2OFF is not profitable over the last twelve months, with a negative P/E ratio of -0.12, reflecting the challenges it faces in achieving profitability.
However, there are positive signs for N2OFF's financial position. The company holds more cash than debt on its balance sheet, which is a reassuring sign for investors concerned about financial stability. This liquidity is further evidenced by the company's liquid assets exceeding its short-term obligations. Additionally, InvestingPro Tips suggest that the stock is trading at a low Price/Book multiple of 0.16, which could indicate that the company’s assets are potentially undervalued in the market.
On the sales front, analysts anticipate growth in the current year, which aligns with the company's recent venture into the burgeoning European solar market. However, investors should be aware that the stock has fared poorly over the past month, with a 1-month price total return of -41.68%, and the trend extends over the last year with a price total return of -93.69%. These metrics suggest that while the company has growth potential, it also bears a higher risk profile, which should be considered when evaluating the investment.
For those interested in a deeper analysis, InvestingPro offers a wealth of additional tips, with 11 more insights available on the company's profile page, which could help investors make more informed decisions.
As N2OFF moves forward with its projects and aims to capitalize on the expected growth in the solar PV market, these InvestingPro Insights can provide a valuable perspective on the company's financial health and investment potential.
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