8 January 2011

DayStar eliminates $5m of debt as strategic partnership talks continue

At its 2010 Annual Shareholder meeting on 30 December, DayStar Technologies Inc of Milpitas, CA, USA, which is developing copper indium gallium diselenide (CIGS) thin-film photovoltaic products, announced that it has entered into a series of agreements with a number of its vendors to eliminate an additional $5m in debt from its balance sheet in exchange for shares of its common stock.

Previously, last October, Socius CG II Ltd entered into agreements with 14 of DayStar’s vendors to purchase about $1m of the firm’s debt, and settled the resulting amounts owed in exchange for free-trading shares of DayStar’s common stock.

At the meeting, shareholders elected six directors (Peter Lacey, Magnus Ryde, Jonathan Fitzgerald, Richard Green, William Steckel, and Kang Sun) to a one-year term. In addition, they approved the terms of certain convertible notes and warrants, including the issuance of shares upon conversion of such notes or exercise of such warrants. Shareholders also approved an amendment to the firm’s Amended and Restated 2006 Equity Incentive Plan to increase the number of shares available for issuance under the plan, and the ratification of Hein & Associates LLP as independent auditors.

“The key support of our shareholders and creditors has helped us to maintain a key component of our attractiveness to strategic partners,” says CEO Magnus Ryde. “We have made significant progress in restructuring our balance sheet which should better position us as we continue our discussions with potential strategic partners,” he adds. “The partnerships we are pursuing, if consummated, could include joint ventures, licensing agreements, contract manufacturing agreements, a reverse merger with or an acquisition of DayStar.”

“We appreciate the continued support of our vendors and other stakeholders,” says Ryde. “This past year has had its challenges, but we are pleased with our progress towards completing crucial activities to enhance our ability to pursue strategic transactions to manufacture our CIGS modules.”

Last July, Ryde said that, “while DayStar has accomplished significant innovations with our CIGS process and technology, we have encountered challenges in obtaining affordable capital for the build-out and operation of our facility in Newark... We are pursuing opportunities to manufacture our CIGS modules offshore and have begun discussions with several potential partners to implement this strategy.”

See related items:

DayStar cuts loss as it reduces debt and expenses

Tags: DayStar CIGS

Visit: www.daystartech.com