26.2.2006: Meldung: Arise Technologies Corporation: financing and strategic update
Thursday February 23, 6:56 pm ET
KITCHENER, ON, Feb. 23 - ARISE Technologies Corporation, announced today that it has received $131,857 of subscription agreements in a non-brokered private placement of Units. Each Unit, priced at $0.30 each, consists of one common share and one half of one warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.35 per common share, expiring two years from the date of closing of this private placement. The Company is also pursuing several debt-to-equity conversions under similar terms. The final closing of this private placement and debt-to-equity conversion is subject to approval from the TSX Venture Exchange.
ARISE is now planning to focus on raising a larger, more institutionally focused investment round with an emphasis on investors located outside Canada where investor interest in solar technology appears to be stronger. The Company believes that in order to attract such financing its structure needs to be altered. In response to such belief, ARISE is doing the following:
1) working with WR Hambrecht + Company, LLC, a San Francisco based
investment bank, that is acting as a financial advisor to ARISE on a
2) entered into preliminary discussions with several parties about
forming a joint venture with its Systems Division. ARISE has decided that
having an industry partner that can provide a strategic allocation of
photovoltaic modules plus financial and technical expertise will allow
the Company to realize on the value that the company has built up over
the last ten years. With the proposals before the Ontario government on a
Standard Offer Contract, ARISE believes that it would be well positioned
with a strategic partner to respond if a Standard Offer Contract is
approved. This would also allow ARISE to focus its resources on
commercializing its proprietary PV technology.
3) considering moving the high efficiency PV technology into a separate
company which would allow investors to invest directly in that Company in
order to commercialize the technology faster.
4) has converted some staff compensation into shares under a
debt-for-equity conversion over the last year. Senior executives have
been paid mostly in shares over the last six months using this approach
due to the tight cash situation. The plan was to return to cash
compensation in early 2006 but the Company is unable to do so at this
time. Therefore, in order to help conserve remaining cash, Bruce West has
resigned from his position of President and COO effective February 17,
2006. Mr. West will continue in a consulting capacity as the Company
reviews strategic options and will become a member of the ARISE Advisory
Council. In the event that the ARISE PV technology becomes properly
funded shortly, Mr. West has indicated that he would consider a full time
executive position that involves commercializing this technology.
ARISE CEO Ian MacLellan stated "Bruce has made a significant contribution to, and investment in, ARISE over the last five months and I had hoped that we would raise enough funds by now to move forward on our business plan. I appreciate his willingness to continue helping as we implement our funding strategy. We believe that the proposed strategy to provide investors the flexibility to invest in either ARISE or directly in the business units will help ARISE raise funds and potentially unlock value. At the same time, no assurance can be given that the Company will be able to execute these strategic options given its current financial resources. The Company requires additional capital to continue its operations and fund its business plan."
ARISE Technologies is dedicated to accelerating the use of solar energy in mainstream North American markets. The Company"s shares are listed on the TSX Venture Exchange under the symbol APV. Additional information is available at www.arisetech.com and www.sedar.com. Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results.
The TSX Venture Exchange has neither approved nor disapproved the
contents of this news release.
For further information
ARISE Technologies Corporation, 321 Shoemaker Street, Kitchener, Ontario, Canada, N2E 3B3, Tel. (519) 725-2244, Fax: (519) 725-8907, www.arisetech.com
Ian MacLellan, Vice-Chairman & CEO, (519) 725-2244 x222, email@example.com
TSX Venture Exchange Symbol: APV
Source: ARISE Technologies Corporation