NEW YORK, Feb. 24, 2011 (GLOBE NEWSWIRE) -- SunSi Energies, Inc. (the "Company" or "SunSi") (OTCBB:SSIE) today announced that it is nearing completion of the acquisition of a 60% ownership interest in the Wendeng He Xie Silicon Co. Ltd. ("Wendeng") trichlorosilane (TCS) facility located in Weihai, China. Previously, the Company had announced on November 30, 2010 that it had signed a definitive agreement to purchase Wendeng. The Company has completed its due diligence on Wendeng and expects to receive the final business license necessary to close the transaction within the next few weeks.
David Natan, SunSi's Chief Executive Officer, stated, "We are very encouraged with the progress that we've made to date on the Wendeng acquisition. Our due diligence process has substantiated our expectations about Wendeng, its excellent management team and its high quality TCS currently being sold to billion dollar entities at very favorable operating margins."
Additionally, the Company announced today that the sole shareholder of the Wendeng facility has agreed to accept in excess of 50% of the purchase price of Wendeng in SunSi common shares. This shareholder has agreed to defer a significant portion of the remaining cash purchase price for six months. Under the terms of this agreement, SunSi will pay approximately $450,000 to consummate the Wendeng acquisition.
Richard St-Julien, President of SunSi Energies Hong Kong Limited, said, "We are extremely pleased that our joint venture partner has demonstrated his confidence in us and our future expansion plans by agreeing to become a significant shareholder in SunSi. In addition, by providing us with very favorable terms of payment, this will enable us to close this acquisition quickly, and at the same time provide us with a highly motivated strategic investor with common interests to that of SunSi's management and its shareholders. With this acquisition and the previous acquisition of the Baokai distribution rights, we believe SunSi will become one of the largest TCS producers in China which will give us tremendous leverage with current and future clients."
Mr. St-Julien continued, "As soon as the Wendeng acquisition is consummated, we expect to immediately begin expansion of the Wendeng facility to triple its capacity from 20,000 metric tons to 60,000 metric tons. This will enable us to benefit from expected significant increased near-term demand for TCS both within China and internationally."
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About SunSi Energies Inc. ("SunSi")
SunSi's business plan is to acquire and develop a portfolio of high quality trichlorosilane producing facilities that are strategically located, and possess a potential for future growth and expansion. Through its wholly owned subsidiary, SunSi Energies Hong Kong Ltd., SunSi has consummated its first acquisition; the Baokai distribution company now enables SunSi to distribute and sell all of the TCS produced at the Zibo Baoyun Chemical Plant, both within and outside of China.
Relatively unknown but essential to the solar industry, TCS is a chemical primarily used in the production of polysilicon, an essential raw material in the production of solar cells for photovoltaic (PV) panels which convert sunlight to electricity for homes, businesses and farms. TCS is considered to be the first product in the solar PV value chain before polysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry. SunSi believes it is the first and only "pure play" public company in the world focusing exclusively on the production and sales of TCS. SunSi Energies Inc. is traded on the OTC Bulletin Board under the ticker SSIE. For additional information, please visit the Company's website: www.sunsienergies.com.
Forward-looking Statements:
This news release contains forward-looking statements related to the future financial condition and results of SunSi's operations. These statements are based on current expectations and estimates about the trichlorosilane markets and industry in which SunSi operates, management's beliefs and assumptions regarding these markets, future growth prospects, the commencement of generating revenues in 2011, completion of the Wendeng acquisition, creating a formidable company and increasing shareholder value, becoming the only public company in the world focused on the production and sales of TCS, and maintaining a listing on a national exchange. These statements are subject to important risks and uncertainties, which are difficult to predict, and assumptions which may prove to be inaccurate. Some of the factors that could cause results or events to differ materially from current expectations include, but are not limited to: general economic conditions, market or business conditions; changing competitive environment; changing regulatory conditions or requirements; changing technology; raising sufficient capital to consummate the Wendeng acquisition, and attaining the required number of shareholders to meet exchange listing requirements, the potential emergence of other companies focused on TCS production, the price of TCS sold within China and outside of China, the level of production by the ZBC factory, and success in implementing productivity initiatives. Some of these factors are largely beyond the control of SunSi. Should any factor impact SunSi in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. All of the forward-looking statements made in this document are qualified by these cautionary statements, therefore, there can be no assurance that the results or developments anticipated by SunSi will be realized or, even if substantially realized, that they will have the expected consequences for SunSi. Readers should not place undue reliance on any forward-looking statements. Furthermore, SunSi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other occurrence.
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