DALLAS, TX -- (Marketwired) -- 10/17/16 -- Zen Home Services, a wholly owned subsidiary of The Chron Organization, Inc. (OTC PINK: CHRO), announced today that the Company has entered into a Letter of Intent for the acquisition of Enertrade Electric LLC ., a Texas -based Retail Electric Provider (REP) doing business in the ERCOT market.
Zen Home Services intends to acquire Enertrade Electric, LLC via a member interest purchase agreement. This will give Zen all of the required ISO and regulatory licensing, supplier agreements to operate in the REP space in an overnight fashion. Enertrade has been active in acquiring and servicing customers in Texas and has been operating profitably for several years. Additionally, Enertrade has a spotless customer service record with the Texas Public Utility Commission .
This acquisition secures another critical business segment for the Zen Home Services portfolio in terms of revenue generation, but more importantly reinforces our strategy; to provide Smart and Energy Efficient Homes for the masses. This underscores Zen Home Service's short and long-term goals of enabling its consumers to save money on their monthly energy costs while reducing their long-term carbon footprint by transitioning their energy to renewable sources and smart Time of Use (TOU) and/or demand response electricity products.
Alex Rodriguez , CHRON President and Zen Home Services CEO, who led the negotiations with Enertrade executives, stated, "This acquisition marks a huge step forward for Zen Home Services in our overall plan to not only be the home automation leader in Texas and eventually nationwide, but to also supply smart renewable electricity plans to our customers."
This acquisition will allow Zen Home Services (subject to Texas PUC approval, which should take approximately 90 days), to immediately begin offering energy products and services to new customers as well as continuing to serve existing customers. The Company expects to see immediate incremental revenue from this new business because it plans on marketing to customers even prior to the official close, via an interim marketing agreement between the companies.
Byron Young , CHRON Chairman, remarked, "This is a big deal for us. With Zen Home Services able to operate as a Retail Electric Provider, we are effectively combining home automation with green energy services toward offering the consummate smart home solution. This unique value proposition to the market will empower consumers to save money on their monthly energy costs while adding value to our shareholders as we roll out another major source of revenue for CHRON."
Rodriguez added, "Through strategic vendors, we've been building out a custom ERP system the past year, exclusively for the REP space that will allow us to market and sell cutting edge TOU and demand response products to the residential masses. Our Smart Home Controls already gives us access to lights, thermostats and large appliances -- the REP offering is the final piece to this puzzle that I've envisioned for the past 10 years now."
The transaction must go through approval by the Public Utility Commission of Texas ; we will keep our shareholders posted throughout the process.
Anything to post? past the half way point here.
Go CHRO!
