XZERES Obtains New $6.5 Credit Facility for Wind Power

Apr 5, 2013 – XZERES Corp (OTCQB: XPWR), designer, manufacturer and marketer of small (2.5 – 10KW) wind-powered, distributed energy turbines and other renewable energy products,  obtained a new $6.5 million credit facility.

Renewable Power Resources, LLC, comprised of a group of world-class strategic investors with strong interest in distributed renewable power generation, provided the credit facility to support XZERES’ 2013 near term and strategic growth objectives. According to XZERES CEO, Frank Greco, “Renewable Power Resources offers a wide array of interests and relationships in areas such as agriculture, commercial/industrial real estate, and other unique global industrial markets, something we look forward to leveraging in an effort to further the added values to the Company’s growth opportunities.”

Additionally, Frank Greco stated, “As the Company’s largest single funding to-date, coupled with our improved market position, global demand, and lower cost structure, we believe this financing will enable XZERES to achieve its goals and dramatically improve delivery times, order flow with vendors, and build out of finished units to react quickly to the growing demand for XZERES products.”

Expanded Global Opportunities for 2013
To date, XZERES’ has developed a strong global presence primarily driven by the US and UK markets. XZERES’ is highly recognized for its uptime and durability, as well as its highly engineered products including its marine grade turbine. According to Greco, “while we anticipate the U.S. and particularly the UK to remain major drivers in our business, 2013 expects to benefit from our efforts to further expand globally. Already, XZERES has meaningful activities in process and developing in Vietnam, Japan, the Caribbean and other parts of continental Europe.”
In addition to the expanding global market opportunities for our turbine products, the Company is equally excited about the growing domestic interest in its Power Efficiency products. “An increasing number of dealers and potential customers are beginning to recognize the ability of our PE products to help drive savings in their energy bills” stated Greco. XZERES anticipates the PE product line to add a meaningful contribution in 2013.

The Importance of Distributed Generation Versus Centralized (Utility?Scale) Generation  Distributed wind — wind energy that is used wholly or partially at the site where the equipment is deployed and the energy is generated– is growing worldwide at an annual rate of approximately 35%. It is a fundamentally different business with different economics and market drivers then the utility scale wind projects that grab newspaper headlines, Greco emphasized. He said that “Farmers, ranchers, home owners, small businesses, corporations and governments are discovering that distributed wind can dramatically reduce operating costs and serve as a hedge against future electricity rate hikes.”

Unlike utility-scale wind, Greco pointed out that “Distributed wind requires no infrastructure (transmission) upgrades since the power that is generated is used primarily on-site. As a result, several U.S. states now provide long term incentives for small wind that add to its economic appeal, while Feed-In Tariffs, which allow for the sale of excess electricity, are stimulating strong demand in areas like the UK, Europe and Asia.”

“While utility-scale wind has garnered the lion’s share of attention, we believe the future of wind lies with distributed wind, thanks to its economic benefits, its versatility and its ease of implementation,” Greco said. “The price and quality of our products, combined with our global marketing platform, have placed us in a leading position to take advantage of this largely untapped and growing market.”

Over the past three years, XZERES has invested substantial resources toward making its products world and best in class, establishing a global footprint, and implementing a quality supply-chain, distribution and service platform. According to Greco “XZERES has been on a longer-than-anticipated journey toward success, but with this larger, more adequate funding source in place, we now look forward to demonstrating the Company’s capability and leveraging all the years of work and effort to put the Company in position for accelerated growth and performance.”