MOUNTAIN VIEW, Calif., Jan. 8 /PRNewswire-Asia-FirstCall/ -- Solar
EnerTech Corp. (OTC Bulletin Board: SOEN) (the "Company") today announced
significant changes to the Company's Series A and Series B Convertible Notes
and Series A, Series B and Series C Warrants.
On January 7, 2010, the Company retired approximately $11,559,145 in
aggregate outstanding principal owed under the Company's Series A and Series B
Convertible Notes (the "Notes") by entering into a Series A and Series B Notes
Conversion Agreement (the "Conversion Agreement") with the holders of the
Notes representing at least seventy-five percent of the aggregate principal
amounts outstanding under the Notes. Under the Conversion Agreement, all of
the Notes have been amended and election has been taken such that all
outstanding principal and all accrued but unpaid interest with respect to all
of the outstanding Notes have been automatically converted into shares of the
Company's common stock at a conversion price per share of common stock of
$0.15 effective as of January 7, 2010 (the "Conversion Date"). The holders of
the Notes have agreed to waive all accrued and unpaid late charges instead of
converting them into stock. No further payments are owing or payable under the
Notes. Approximately 78,277,055 shares of the Company's common stock are
issuable in the conversion. As of the Conversion Date, each Note no longer
represents a right to receive any cash payments (including, but not limited to,
interest payments) and only represents a right to receive the shares of common
stock into which such Note has been automatically converted into.
On January 7, 2010, the Company also entered into an Amendment to the
Series A, Series B and Series C Warrants (the "Warrant Amendment") with the
holders of at least a majority of the common stock underlying each of the
Company's outstanding Series A Warrants, Series B Warrants and Series C
Warrants. The Warrant Amendment reduces the exercise price for all of the
Warrants to $0.15, removes certain maximum ownership provisions and removes
antidilution provisions for lower-priced security issuances.
In addition, the Board of Directors appointed David A. Field and David
Anthony to the Company's Board of Directors, effective upon the date of the
Company's filing of its Form 10-K for the fiscal year ended September 30, 2009.
Mr. Field is currently the President and Chief Executive Officer of Applied
Solar, LLC and a director of ThermoEnergy Corporation. Mr. Anthony is
currently the Managing Director of 21 Ventures and sits on the boards of
ThermoEnergy Corporation, Agent Video Intelligence, Axion Power International,
Inc., 3GSolar, BioPetroClean, and VOIP Logic.
Commenting on the restructuring, Mr. Leo Young, Chief Executive Officer of
Solar EnerTech said, "We are pleased to be able to restructure and retire our
Series A and Series B Convertible Notes. Our efforts to improve our capital
structure will improve our balance sheet and help support our strategic
expansion and long term growth initiatives."
Commenting on the addition of Messrs. Field and Anthony, Mr. Young said,
"We are pleased to announce that David Field and David Anthony have joined our
Board of Directors. We believe they will be wonderful additions and look
forward to their input and expertise as we endeavor to continue to grow Solar
About Solar EnerTech Corp.
Solar EnerTech is a photovoltaic solar energy cell manufacturing
enterprise incorporated in the United States with its corporate office in
Mountain View, California. The Company has established a 67,107-square-foot
manufacturing facility at Jinqiao Modern Technology Park in Shanghai, China.
The Company currently has two 25MW solar cell production lines and a 50MW
solar module production facility.
Solar EnerTech has also established a Joint R&D Lab at Shanghai University
to develop higher efficiency cells and to put the results of that research to
use in its manufacturing processes. Led by one of the industry's top
scientists, the Company expects its R&D program to help bring Solar EnerTech
to the forefront of advanced solar technology research and production.
Safe Harbor Statement
Statements contained in this press release, which are not historical facts,
are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
based largely on current expectations and are subject to a number of known and
unknown risks, uncertainties and other factors beyond our control that could
cause actual events and results to differ materially from these statements.
These statements are not guarantees of future performance, and readers are
cautioned not to place undue reliance on these forward-looking statements,
which are relevant as of the date of the given press release and should not be
relied upon as of any subsequent date. Solar EnerTech undertakes no obligation
to update publicly any forward-looking statements.
SOURCE Solar EnerTech Corp.