DayStar Technologies, Inc. (Nasdaq: DSTI), a developer and manufacturer of innovative Photovoltaic Foil(TM) products, announced completion of a $15 million institutional private placement. The proceeds of this financing will advance the Company’s recently announced execution strategy. Dr. John Tuttle, DayStar’s Chairman and CEO, stated, “We greatly appreciate the tremendous vote of confidence in DayStar that this financing represents from our new institutional investor. The capital infusion fulfills part of DayStar’s overall financing strategy and supports our recently announced execution plans. Achieving this financing milestone will provide for the rapid launch of our manufacturing expansion program and enables us to progress towards meeting our near term strategic objectives.”
The Senior Convertible Debenture issued in the financing carries an interest rate of 7.5% and is convertible into DSTI common stock at $11.50 per share. Subject to certain conditions, the Company may elect to make installment payments in cash or stock priced at a 13.5% discount to the 5-day Volume Weighted Average Price of DSTI common stock prior to the installment payment date. The Company also issued warrants to purchase common stock that are fully exercisable at $12.65 per share six months from today’s date and will expire in May 2011.
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.
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