Investing is interesting


Dear Daniel,

We are writing with a promising update regarding the Karoo Fresh solar project.

First, a recap of the background for this project:

October 2022: The system was energised, and running in early energy mode. Karoo Fresh paid for one and a half months of electricity usage. Unfortunately, shortly thereafter, Karoo Fresh experienced extreme weather, including a massive hailstorm, lost their crop, and were unable to continue paying. In good faith, Sun Exchange continued to provide energy to Karoo Fresh, and make payments to you, the cell owners.

January 2023: On instruction from the Sun Exchange Trust, payments to solar cell owners stopped, given Sun Exchange still had not received payment from Karoo Fresh.

17 May 2023: Sun Exchange switched off the plant due to non-payment. Karoo Fresh is still in arrears on its account for the period 15 November 2022 to 17 May 2023. You, the solar cell owners, are currently owed payment for the period of 1 February to 17 May 2023.

July & September 2023: Extreme flooding at the farm caused damage to the solar plant. The EPC lodged a claim with their insurer and is currently in the process of repairing the site (and making it more flood-resistant).

Current status:

We’re pleased to report the plant will be re-energised on 8 December 2023 and distributions to solar cell owners will resume at the end of December.

Karoo Fresh has new investors, who will share the ownership of farming operations - both income and expenses. The new ownership has undertaken to settle its debt with Sun Exchange (including late charges) in Q1 2024, by ceding the income from the crop, expected later in the summer.

We have also agreed to switch the plant back on by 8 December 2023, under the condition that payments be made in advance. This will allow the farm to maximise its operations and avoid using a diesel-powered generator, and will enable Sun Exchange to resume distribution of income to solar cell owners.

Next steps:

We have already received pre-payment for December, which will be distributed to you at the end of that month. We expect the pre-payment for January 2024 to be made by the start of January, otherwise, the plant will be switched off again.

In Q1 2024, the repairs on the plant are expected to be complete. We will also formalise the payment arrangement for the arrears and ongoing payments. Once this is defined, we will communicate to you the timeline when you can expect to receive arrears payments for the 1 Feb - 17 May 2023 period you are still owed.

The legal liquidation process that was initiated has been postponed, as we hope that the new commercial arrangement will hold.

Thank you

We acknowledge your patience in this long-running saga. Please rest assured that we are diligently involved in resolving the situation and providing you with the latest updates. If you have any questions or require more information, please don't hesitate to reach out to us at hello@thesunexchange.com.

Warm regards,

The Sun Exchange Team