EX-99.1
2
ex_99-1.htm
PRESS RELEASE DATED OCTOBER 27, 2008
ex_99-1.htm
EXHIBIT 99.1
For
more information, contact:
Commerce Energy Group,
Inc.
C. Douglas Mitchell
Chief Financial Officer
714-259-2500
PondelWilkinson Inc.
Roger Pondel/Robert Jaffe
310-279-5980
investor@pondel.com
Commerce
Energy Sells Texas Retail Electric Business for $14.8 Million
COSTA MESA, CA - October 27, 2008
-
Commerce Energy Group,
Inc. (AMEX:EGR) said today that
its principal operating subsidiary,
Commerce Energy, Inc., sold all of its retail electric service contracts in
Texas to Ambit Energy, LP (Ambit), for an estimated $14.8
million. The purchase price includes $8.5 million in cash received on
closing, a second payment of $2.7 million, reduced by customer deposits and
adjusted for final customer count, to be received on or before November 24, 2008
and deferred payments over a 24-month period estimated to be $3.6
million.
"This is
a significant, positive step in both paying down debt as well as strengthening
the core platform of the company", said Commerce chief operating officer,
Michael Fallquist. "We found a buyer in Ambit that shares our
commitment to great technology, products and customer service. Ambit
has agreed to preserve the terms and conditions of the customer contracts and
this transaction will be seamless to all our customers".
Commerce
chief executive officer, Gregory L. Craig, remarked, "We have achieved another
critical milestone in the now eight month old turnaround process. We
are pleased to have completed a successful asset sale against the backdrop of a
global credit and financial crisis and believe that this sale will better
position Commerce operationally, financially, and strategically to achieve our
future objectives".
Commerce
will retain its business providing retail electric power and natural gas in
other markets in which it currently operates. In connection with the
sale, Commerce also entered into amendments to its debt agreements, which, among
other things, allow additional support of up to $6.0 million from AP Finance,
LLC, remove the requirement to have a refinancing term sheet by October 30, 2008
and decrease the revolving loan limit and letter of credit limit under the
credit facility.
Commerce
was represented by Affliated Energy Group (AEG) in connection with the
transaction.
About
Ambit Energy
Ambit
Energy, L.P. is a retail energy provider based in Dallas, Texas. Ambit currently
provides electricity and natural gas service to retail customers in Texas, New
York and Illinois. Additional information on Ambit Energy can be found at
ambitenergy.com.
About
Commerce Energy Group
Commerce
Energy Group is a leading independent U.S. electricity and natural gas marketing
company.
Its
principal operating subsidiary, Commerce Energy, Inc., is licensed by the
Federal Energy Regulatory Commission and by state regulatory agencies as an
unregulated retail marketer of natural gas and electricity and serves
homeowners, commercial and industrial consumers and institutional
customers. For more information, visit
www.CommerceEnergy.com.
Forward-Looking
Statements
Except
for historical information contained in this release, statements in this release
may constitute forward-looking statements regarding the company's assumptions,
projections, expectations, targets, intentions or beliefs about future events.
Words or phrases such as "anticipates", "believes", "estimates", "expects,"
"intends", "plans", "predicts", "projects", "targets", "will likely result,"
"will continue", "may", "could" or similar expressions identify forward-looking
statements. Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties which could cause actual results
or outcomes to differ materially from those expressed. Commerce Energy Group,
Inc. cautions that while such statements in this news release, whether express
or implied, are made in good faith and the company believes such statements are
based on reasonable assumptions, including without limitation, management's
examination of historical operating trends, data contained in records, and other
data available from third parties, the company cannot assure that its
projections will be achieved. In addition to other factors and
matters discussed from time to time in our filings with the U.S. Securities and
Exchange Commission (SEC), some important factors that could cause actual
results or outcomes for Commerce Energy Group, Inc. or its subsidiaries to
differ materially from those discussed in forward-looking statements include:
the ability to secure a longer term credit facility by year-end, the success and
effectiveness of the company's new management plans and strategies; higher than
anticipated attrition of company personnel, the volatility of the energy
markets; higher than expected attrition of, and/or unforeseen operating
difficulties relating to, customer accounts, competition, operating hazards,
uninsured risks, failure of performance by suppliers and transmitters, changes
in general economic conditions, seasonal weather or force majeure events that
adversely affect electricity or natural gas supply or infrastructure, decisions
by our energy suppliers requiring us to post additional collateral for our
energy purchases, uncertainties in the capital markets should the company seek
to raise additional equity or debt; uncertainties relating to federal and state
proceedings regarding the 2000-2001 California energy crisis; accounts
receivable collection issues caused by unfavorable changes in regulations or
economic trends, increased or unexpected competition, adverse state or federal
legislation or regulation, or adverse determinations by regulators, including
failure to obtain regulatory approvals. Any forward-looking statement
speaks only as of the date on which such statement is made, and, except as
required by law, the company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not possible
for management to predict all such factors.
# #
#

EX - 99 . 1 2 ex _ 99 - 1 . htm PRESS RELEASE DATED OCTOBER 27 , 2008 ex _ 99 - 1 . htm EXHIBIT 99 . 1 For more information , contact : Commerce Energy Group , Inc . C. Douglas Mitchell Chief Financial Officer 714 - 259 - 2500 PondelWilkinson Inc . Roger Pondel / Robert Jaffe 310 - 279 - 5980 investor@pondel.com Commerce Energy Sells Texas Retail Electric Business for $ 14.8 Million COSTA MESA , CA - October 27 , 2008 - Commerce Energy Group , Inc . ( AMEX : EGR ) said today that its principal operating subsidiary , Commerce Energy , Inc . , sold all of its retail electric service contracts in Texas to Ambit Energy , LP ( Ambit ) , for an estimated $ 14.8 million . The purchase price includes $ 8.5 million in cash received on closing , a second payment of $ 2.7 million , reduced by customer deposits and adjusted for final customer count , to be received on or before November 24 , 2008 and deferred payments over a 24 - month period estimated to be $ 3.6 million . " This is a significant , positive step in both paying down debt as well as strengthening the core platform of the company " , said Commerce chief operating officer , Michael Fallquist . " We found a buyer in Ambit that shares our commitment to great technology , products and customer service . Ambit has agreed to preserve the terms and conditions of the customer contracts and this transaction will be seamless to all our customers " . Commerce chief executive officer , Gregory L . Craig , remarked , " We have achieved another critical milestone in the now eight month old turnaround process . We are pleased to have completed a successful asset sale against the backdrop of a global credit and financial crisis and believe that this sale will better position Commerce operationally , financially , and strategically to achieve our future objectives " . Commerce will retain its business providing retail electric power and natural gas in other markets in which it currently operates . In connection with the sale , Commerce also entered into amendments to its debt agreements , which , among other things , allow additional support of up to $ 6.0 million from AP Finance , LLC , remove the requirement to have a refinancing term sheet by October 30 , 2008 and decrease the revolving loan limit and letter of credit limit under the credit facility . Commerce was represented by Affliated Energy Group ( AEG ) in connection with the transaction . About Ambit Energy Ambit Energy , L . P . is a retail energy provider based in Dallas , Texas . Ambit currently provides electricity and natural gas service to retail customers in Texas , New York and Illinois . Additional information on Ambit Energy can be found at ambitenergy.com . About Commerce Energy Group Commerce Energy Group is a leading independent U . S . electricity and natural gas marketing company . Its principal operating subsidiary , Commerce Energy , Inc . , is licensed by the Federal Energy Regulatory Commission and by state regulatory agencies as an unregulated retail marketer of natural gas and electricity and serves homeowners , commercial and industrial consumers and institutional customers . For more information , visit www.CommerceEnergy.com . Forward - Looking Statements Except for historical information contained in this release , statements in this release may constitute forward - looking statements regarding the company 's assumptions , projections , expectations , targets , intentions or beliefs about future events . Words or phrases such as " anticipates " , " believes " , " estimates " , " expects , " " intends " , " plans " , " predicts " , " projects " , " targets " , " will likely result , " " will continue " , " may " , " could " or similar expressions identify forward - looking statements . Forward - looking statements are not guarantees of future performance and involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed . Commerce Energy Group , Inc . cautions that while such statements in this news release , whether express or implied , are made in good faith and the company believes such statements are based on reasonable assumptions , including without limitation , management 's examination of historical operating trends , data contained in records , and other data available from third parties , the company can not assure that its projections will be achieved . In addition to other factors and matters discussed from time to time in our filings with the U . S . Securities and Exchange Commission ( SEC ) , some important factors that could cause actual results or outcomes for Commerce Energy Group , Inc . or its subsidiaries to differ materially from those discussed in forward - looking statements include : the ability to secure a longer term credit facility by year - end , the success and effectiveness of the company 's new management plans and strategies ; higher than anticipated attrition of company personnel , the volatility of the energy markets ; higher than expected attrition of , and / or unforeseen operating difficulties relating to , customer accounts , competition , operating hazards , uninsured risks , failure of performance by suppliers and transmitters , changes in general economic conditions , seasonal weather or force majeure events that adversely affect electricity or natural gas supply or infrastructure , decisions by our energy suppliers requiring us to post additional collateral for our energy purchases , uncertainties in the capital markets should the company seek to raise additional equity or debt ; uncertainties relating to federal and state proceedings regarding the 2000 - 2001 California energy crisis ; accounts receivable collection issues caused by unfavorable changes in regulations or economic trends , increased or unexpected competition , adverse state or federal legislation or regulation , or adverse determinations by regulators , including failure to obtain regulatory approvals . Any forward - looking statement speaks only as of the date on which such statement is made , and , except as required by law , the company undertakes no obligation to update any forward - looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events . New factors emerge from time to time , and it is not possible for management to predict all such factors . # # #