CleanSpark (OTCMKTS: CLSK) has been releasing a slew of exciting news, and that run of news continues today. In a press release issued early this morning, the company announced that it has entered into a new agreement. Here’s what’s going on:
CLSK Announces New Agreement
As mentioned above, CleanSpark issued a press release early this morning, announcing a new agreement. In the release, the company said that it entered into a 10-year exclusive agreement with International Land Alliance (OTCMKTS: ILAL).
Under the terms of the agreement, CLSK will provide its microgrid Value Stream Optimizer (mVSO) software services to support system design and engineering as well as integrating CleanSpark’s mPULSE software into the final systems on all future energy projects across the ILAL portfolio of properties.
In the release, CLSK said that it will also have the right of first refusal to supply energy storage and system installation services to ILAL.
Finally, CLSK said that it will make a direct investing in ILAL of up to $500,000. In return, the company will receive 1,000 preferred shares and 350,000 common shares of ILAL. This investment will help to further solidify the relationship and provide exclusivity.
ILAL is a real estate investment company that owns properties that are residential, commercial, recreational, waterfront, ranch, camping and hotels.
Importantly, a large amount of the company’s development inventory is located in California and the Baja Peninsula of Mexico. This is crucial considering that these areas either have no access to utility grid power or are part of an unreliable power grid.
CLSK also said that a large portion of the residential and commercial structures will be powered by microgrid solutions on-site at the property. As of today, the ILAL portfolio includes about 1,500 deployment sites for the company’s software solutions.
CleanSpark said that the initial project will revolve around conducting feasibility studies to support the company’s mVSO software at Emerald Grove Estates in Hemet California. The initial work will also include feasibility studies at Costa Bajamar, followed by studies at the Oasis Park Resort.
Importantly, Oasis Park is entirely off-grid and each site requires islanded microgrid power. It is expected that the initial rollout will start later this year, with two Villa’s acting as model home unites.
As far as revenue realization goes, CLSK said that depending on the size, scope and complexity of each deployment, it will realize revenues ranging from $2,000 to more than $100,000 per property.
Also, the company said that in addition to single property systems, it plans on working with ILAL to determine the feasibility of creating utility scale solutions that will serve resort properties. In a statement, Zach Bradford, CEO at CLSK, had the following to offer:
“We are very pleased and excited to be working with ILAL to exclusively provide our software products and services for all energy projects across ILAL’s entire portfolio of properties. Having demonstrated our capability of providing islanded power for large-scale critical military installations, we now can deploy these same technologies across a broad spectrum of commercial, residential, agricultural and vacation properties of all sizes and complexities. This a game changer for us and gives CleanSpark a significant pipeline of new business opportunities.”
This News Is Huge
CleanSpark has been working to drive shareholder value by bringing in new, large-scale contracts that will generate meaningful revenue. That’s exactly what’s happening with the news issued today. The contract between ILAL and CLSK has the potential to generate millions in revenue over time, should all go well. With efforts starting as early as this year, investors have quite a bit to look forward to!
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Disclosure – The author holds no position nor intends to enter into any position on any stock mentioned herein. The author provided his own views, which may differ from those of Alpha Stock News or CNA Finance, its parent company. CNA Finance was paid forty thousand dollars to provide 30 days of research, writing, advertising, and other digital investor relations services to CleanSpak.