MMC Energy, Inc. Announces Sale of Equipment
Mar 5, 2009 – MMC Energy, Inc. (Nasdaq: MMCE) announced that it signed a definitive agreement to sell its contracts to purchase 2 natural gas compressors for $2.1 million to an affiliate of Wellhead Electric Company, Inc.
The Company purchased the compressors from Kobelco EDTI Compressors, Inc. for an expected delivery in March 2009 for use at its Chula Vista and Escondido Energy Upgrade Projects. The purchase price consists of $1.9 million in cash and the assumption of $210,000 of remaining payments due under the contracts, and is equal to the Company’s cost for the equipment.
The Company’s two Upgrade Projects have been on hold pending the receipt of long-term contracts for peaking power, and in the case of Chula Vista, a permit from the California Energy Commission, whose Preliminary Decision was against the Company. The Company believes that the disposition of equipment at this time is a better option than incurring substantial costs to store and maintain the equipment until construction commences, and that there will be comparable equipment available on a timely basis at such time.
