EAM Solar

Legal Proceedings Report • Oct 29, 2020

EAM Solar ASA: Legal status update

EAM Solar ASA: Legal status update

29 October 2020

New investigation for subsidy fraud by the Prosecutor within the Criminal Court of Bolzano

On Wednesday the 28th of October 2020, EAM Solar ASA was informed that the Prosecutor within the Criminal Court of Bolzano had ordered the financial police to perform a search and seizure of documents from 57 Italian companies related to the ownership 58 Solar PV power plants with subsidized electricity sales contracts towards GSE, of the State of Italy. The search and seizure were conducted as part of an ongoing investigation into subsidy fraud against the State of Italy.

The Milan office of EAM Solar ASA’s Italian subsidiaries, ENS Solar One Srl, Energia Fotovoltaica 25 Srl and EAM Solar Italy Holding Srl were visited by officers of Guardia Di Finanza (the financial police) who retrieved documentation related to the above-mentioned companies. In addition, the search and seizure order also identified Energia Fotovoltaica 14 Srl, which is already part of the ongoing criminal proceedings in Milan and was sent into bankruptcy in 2016.

The search and seizure order issued by the Prosecutor identified 79 individuals as names of interest to the public prosecutor. Viktor Erik Jakobsen, CEO of EAM Solar ASA, holds the position as Sole Managing Director in the above-mentioned companies, and is consequently named as one of the 79 individuals.

With this new investigation, and the existing criminal proceedings in the Court of Milan, all power plants sold to EAM Solar ASA in 2014 by Enovos and Avelar through their joint investment vehicle Aveleos SA, are subject to criminal proceedings or investigation for subsidy fraud against the state of Italy. In addition, the new investigation includes 17 of the remaining 31 SPV’s currently owned by Aveleos SA.

This latest investigation further demonstrates the fact that Enovos and Avelar, through their investment vehicle Aveleos SA, conducted a criminal contractual fraud against EAM Solar ASA in 2014.

Criminal Court of Milan

The appeal procedure in the Criminal Court of Appeal of Milan commenced on the 9th of October with a subsequent Court hearing on the 22nd of October. The proceedings have scheduled two more hearings for the 10th and 17th of December 2020. This appeal process is done primarily through written submissions and will not feature witness testimonies. There is a possibility that the Court will add further hearings beyond the two remaining if needed. However, we are informed that the decision of the Court of Appeal may come in first half of 2021.

Collection procedure of EUR 5 million towards Aveleos SA in Luxembourg

Reference is given to the stock exchange notice of the 25th of August 2020. EAM Solar ASA has together with the Bailiff of Luxembourg conducted formal collection procedures in Luxembourg. Aveleos SA has defaulted on the payment demand from the Bailiff. Consequently, EAM Solar ASA will conduct the necessary legal steps to enforce the payment of the award going forward.

Arbitration Chamber of Milan

On Monday the 5th of October 2020, the Arbitration Chamber of Milan notified EAM Solar ASA and its subsidiary EAM Solar Italy Holding Srl that Aveleos SA had filed for two new arbitration proceedings in relation to the P31 SPA with reference to shareholder loans and corporate guarantees. A hearing date has not yet been set in these new arbitration matters.

The first hearing in the Arbitration Appeal of the previous arbitration decision remains scheduled for the 3rd of February 2021, and there have been no developments in these proceedings.

At this point it is not clear if there is an overlap between the new filings and the arbitration award currently under appeal or if the new filings are merited and allowed.

For further information, please contact:

Viktor E Jakobsen, CEO, 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.