MILPITAS, Calif., Oct. 22 /PRNewswire-FirstCall/ -- DayStar Technologies, Inc. (Nasdaq: DSTI), a developer of solar photovoltaic products based on CIGS thin-film deposition technology, announced today agreements to extinguish approximately $1 million in outstanding debts.
Socius CG II, Ltd. ("Socius") has entered into agreements with fourteen of DayStar's vendors pursuant to which Socius purchased approximately $1 million of the aggregate amount of debt, and then settled the resulting amounts owed in exchange for free-trading shares of DayStar's common stock.
DayStar CEO, Magnus Ryde, commented, "We are pleased to have Socius as a new financial partner as we pursue opportunities to manufacture our CIGS modules offshore. As we stated on July 22, 2010, we are pursuing partnerships to implement this strategy. Those potential partnerships, if consummated, could include joint ventures, licensing agreements, contract manufacturing agreements, a reverse merger with or an acquisition of DayStar. It is clear to us that we need to continue to restructure our balance sheet and reduce debt to achieve the best opportunity for increased shareholder value. We are making very significant progress on this important initiative."
The debts extinguished in this transaction will initially be settled in exchange for approximately 325,000 free-trading shares of DayStar's common stock, subject to final adjustment. The initial number of shares to be issued to Socius will be adjusted on the 21st trading day following the date on which the initial shares were first issued based on a 25 percent discount to the volume weighted average price of DayStar's common stock over the 20-day period. In no event will the aggregate number of shares of common stock issued to Socius exceed 9.99% of the total number of shares of the Company's common stock outstanding.
Details of the agreements with Socius and DayStar's issuance of common stock to Socius are set forth in a Current Report on Form 8-K filed with the SEC today.
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release regarding DayStar's business that are not historical facts may be considered "forward-looking statements." The forward-looking statements in this news release, including statements regarding potential partnerships, are based on information available at the time the statements are made and/or management's belief as of that time with respect to future events and involve substantial risks and uncertainties that could cause actual results and outcomes to be materially different. Forward-looking statements are based on management's current preliminary expectations and are subject to risks and uncertainties, which may cause DayStar's results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties are detailed in DayStar's annual report on Form 10-K for the year ended December 31, 2009, and other filings made with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. DayStar undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.
DayStar Technologies, Inc.
Patrick J. Forkin III
Sr. Vice President - Corporate Development & Strategy
SOURCE DayStar Technologies, Inc.