22.1.2007: Meldung: DayStar Restructures Senior Note
DayStar has entered into an agreement with a new investor under which the original investor will transfer the debt, a Class B warrant and the associated rights of each to the new investor, who has agreed to certain modifications to these obligations. Under the terms of this agreement, the Company will make a payment to the original investor prior to the transfer in the form of cash and shares of the Company"s common stock, which issuance will constitute payment in full for all currently due amounts of principal and interest. Additionally, the original investor will receive an additional Class A Warrant to purchase 317,394 shares of common stock when permitted by Nasdaq"s rules.
The new holder of the debt and the Company have agreed that principal and interest payments on the debt will resume with the first principal payment due on February 19, 2007. In addition, they have agreed to amend the terms of the debt to provide that, when permitted by Nasdaq"s rules and subject to standard closing conditions, all principal and interest amounts due on the debt will convert into the Company"s common stock at a price of $2.00 per share. Upon this conversion, the Class B Warrant and all the existing debt covenants will terminate.
As part of this purchase, the Company has also entered into a Stock Purchase Agreement with another group of new investors under which the Company has agreed to sell 2,500,000 shares of common stock at a price of $2.00 per share when permitted by Nasdaq"s rules and subject to standard closing conditions.
DayStar has submitted a request to Nasdaq that the issuance of the new Series A Warrant, the conversion proposed for its debt and the new sale of stock all be permitted without the submission to a stockholder vote that would otherwise be required by Nasdaq"s marketplace rules. In the event such exemptive relief is not obtained, DayStar intends to hold a meeting of its stockholders to approve these issuances as soon as practicable.
Dr. Stephan DeLuca, DayStar"s CEO, said, "This transaction is a breakthrough restructuring of our capitalization plan. We appreciate the patience of our customers, lenders, creditors, stockholders and employees during this process. We believe we have significantly improved our ability to raise the additional capital required to meet the financial needs of the company as we move towards full deployment of our operation and growth plans."
About DayStar Technologies, Inc.
DayStar Technologies, Inc. is an emerging leader in low cost, high efficiency Photovoltaic Foil(TM) that converts sunlight into energy. The Company manufactures CIGS solar cells, which are deposited on flexible metal foils using production processes adapted from computer component manufacturing. As an alternative to wafer-silicon solar cells, DayStar believes the unique combination of its CIGS solar cell design coupled with proprietary manufacturing processes on flexible metal substrates could substantially lower costs and remove deployment barriers currently limiting large adoption of solar energy. For more information on the Company, please visit http://www.daystartech.com .
Daniel Conway, Chief Strategist, Elite Financial Communications Group
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