News Article
DayStar Announces Funding Commitment
The firm has announced entry into a $5 million securities purchase agreement and has also extinguished $3.6 million in debt.
DayStar Technologies, a developer of solar photovoltaic products based on CIGS thin-film deposition technology, has entered into a $5 million securities purchase agreement with Socius CG II, Ltd., a subsidiary of Socius Capital Group ("Socius").
Daystar also announced the additional extinguishment of debt in exchange for shares of common stock as the company continues to restructure its balance sheet and pursue a strategic partnership.
DayStar's CEO, Magnus Ryde commented, "This flexible financing arrangement, with a proven partner in Socius Captial, will strengthen our balance sheet and will better position us as we continue our discussions with potential strategic partners. 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."
Under the agreement, Daystar has the right over a term of two years, subject to certain conditions, to require Socius to purchase up to $5 million of redeemable Series B Preferred Stock (the "Preferred Stock"). With each purchase, Socius will receive two-year warrants to purchase shares of the company's common stock valued at 35% of the Preferred Stock amount.
The exercise price of the warrants will equal the closing bid price of the company's common stock on the preceding day. In addition, Socius will be entitled to exercise an additional investment right for 60 days after each sale of Preferred Stock to purchase common stock valued at 100% of the amount of the Preferred Stock, at a per share price equal to the exercise price of the warrants associated with the sale of Preferred Stock.
DayStar also announced that it has extinguished an additional $3.6 million in debt from its balance sheet through the conversion to equity of certain convertible notes payable, as well as agreements with vendors to settle their liabilities in exchange for shares of DayStar's common stock.
Ryde, commented, "We are pleased to have eliminated another $3.6 million in debt from our balance sheet. We appreciate the continued support of our vendors and other stakeholders. We have nearly completed our balance sheet restructuring and other activities to enhance our ability to pursue strategic transactions."
