Ecosave Holdings (ASX:ECV) has signed four new client contracts in Australia including its third Victorian Government Energy Performance Contract worth $2.9 million.
The other three contracts are Ecosave Service Agreements (ESAs) that will add $360,000 per annum to its revenue and includes its first New Zealand based ESA.
The company is currently raising US$25 million (A$26.87 million) through a private placement to U.S. Accreditor Investors as well as sophisticated and professional investors in Australia and New Zealand.
ESAs provide clients with an alternative to traditional capital funding of energy efficiency upgrades and could shift the company’s business model annual income streams from one-off project revenues.
They also allow clients to fund energy efficiency building upgrades over the long-term as an operating expense with Ecosave delivering building upgrades and ongoing services funded from the energy savings delivered by the agreement.
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