EAM Solar AS: Q2 2024 Financial Report

29 Aug 2024 07:00 CEST

HIGHLIGHTS Q2 2024
Following the decision by the general assembly 27 June, EAM Solar is no longer a
public limited company (ASA/allmennaksjeselskap) but now registered as a limited
liability company (AS/aksjeselskap). The change in organizational form will have
a consequence for the listing of the company’s shares on the Oslo Stock Exchange
Euronext Expand list.

On 4 July the Criminal Appeal Court of Milan upheld the court decision of 2019
and confirmed that the indicted directors of Aveleos where guilty in fraud
against the State of Italy through obtaining subsidies for Solar PV power plants
by the use of falsified documents and false declarations. However, despite this
fact the Criminal Appeal Court decided to acquit the Aveleos Directors of the
fraud conviction from 2019 against EAM.

Since the crimes committed was conducted in the period 2010 to 2012, the
statutory limitations for court proceedings has been passed. Consequently the
convicted individuals does not have to face a criminal sentence but is only
liable for financial damages towards the State of Italy and other civil parties.

The associated companies (Aveleos, Avelar SAEM etc.) are by the Criminal appeal
Court also held financially liable for damages against civil parties. Companies
cannot be indicted or charged in criminal proceedings in Italy, but can be held
financially liable for criminal actions conducted by representatives of the
companies.

The Criminal Appeal Court of Milan decided to rule opposite to the conclusions
of the Criminal Court of Milan in 2019 and the Supreme Court conclusion of 2021.

EAM and its legal counsel are of the opinion that Appeal Courts acquittal
decision for fraud against EAM is based on omittance of witness testimonies and
documented evidence, and unproven speculation by the Appeal Court on EAMs
motives for conducting the transaction. The Court has not addressed the factual
evidence proven in the court proceedings of 2019 that EAM was provided falsified
documents during the contractual negotiations with Aveleos. These are the same
falsified documents that the Appeal Court found as grounds for maintaining the
conviction for fraud against the State of Italy.

EAMs legal counsel in the criminal proceedings recommends that the decision is
appealed to the Supreme Court of Cassation.

The Milan Chamber of Arbitration’s issued their decision in the arbitration
between EAM Solar ASA and Aveleos SA on 29 February 2024. The arbitration court
conclusion an amount in favour of EAM of approximately EUR 2.7 million after
interest is applied. Aveleos has appealed the decision and the first hearing in
this appeal will occur on 5 February 2025.

On 21 May Energeia AS issued a notice of termination of the management agreement
of EAM Solar ASA. The termination period is 12 months. During this period
Energeia AS will conduct the management tasks as defined by the prevailing
management agreement and assist the Board of EAM Solar ASA in the establishment
of a self-sufficient organisation.


EBITDA for the quarter was minus EUR 237 thousand and accumulated for the year
minus EUR 239.



For further information, please contact:

Viktor E Jakobsen, Chairman, phone +47 9161 1009, viktor@eam.no

About EAM Solar ASA: EAM Solar ASA is a utility company that acquires and
operates solar power plants. The Company currently owns solar PV power plants in
Italy. The plants are operating under long-term sales contracts. In addition,
the Company's business is lawsuits in relation acquisition of solar power
plants.

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

626490_2024-EAM-Q2-report.pdf