DGAP-News: Dyesol Limited / Key word(s): Miscellaneous/Miscellaneous
Dyesol Limited: Company Update and Cancellation of Equity Line of
Credit
29.02.2012 / 04:09
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Market Release - 29 February 2012 - Queanbeyan, Australia
Company Update and Cancellation of Equity Line of Credit
This announcement addresses the following issues:
1. Cancellation of Equity Line of Credit
2. DSC Outperforms in Competitor Testing
3. $3 million underwritten Share Purchase Plan
4. Organisational Restructure and Cost Reduction Initiatives
________________________
1. Cancellation of Equity Line of Credit
Given the significant progress made recently in the planning for
commercialisation of the company's technology with its major project
partners, the Board is pleased to announce that it has resolved to cancel
the Equity Line of Credit (ELC) that was established in 2011. The
cancellation of this ELC and the associated monthly share draw-downs have
been achieved at zero cost to the Company. Moreover, we expect this will
relieve the downwards pressure on the Company's share price and allow it to
be positively re-rated in coming months.
2. DSC Outperforms in Competitor Testing
Recent testing in real solar conditions in partner projects in the UK and
Korea have confirmed the effectiveness of DSC in the built environment,
where the results showed DSC consistently outperformed a range of competing
PV technologies. Specifically, in U.K. conditions outperformance was
typically in the vicinity of 30%. The Company has realised that we need to
get this compelling and unambiguous message out more effectively and we
have commenced by publishing technology papers in our new e-Newsletter and
will continue doing this in forthcoming editions. These papers also allow
more effective marketing to a range of stakeholders.
3. $3 million underwritten Share Purchase Plan
Many Dyesol shareholders have contacted the Company in recent months and
indicated their interest in financially supporting the Company. In
response to this interest, the Board has agreed to offer an underwritten
share purchase plan to all eligible shareholders, the key terms of which
will include:
- The Company will offer AUD $3 million of new shares to all eligible
shareholders at a price of 18 cents per share;
- The SPP offer will be underwritten to $3 million by Austock Securities
Limited, which will provide for receipt of $3 million in new funds;
- The Company will also accept additional share subscriptions to a
maximum capital raise of $6 million under the SPP Offer.
- The Record Date for the SPP Offer is 28 February 2012.
A letter of invitation to participate in the offer will be sent to all
eligible Dyesol shareholders shortly.
4. Organisational Restructure and Cost Reduction Initiatives
While the potential opportunities for the commercialisation of Dyesol's
technology are enormous, the Company must balance the pursuit of these
opportunities with careful management of our financial resources. In
recent investor updates there has been increasing focus on cost containment
and this has resulted in a number of initiatives that will reduce monthly
'cash burn' by approximately 30%.
One area with potential for significant reductions is the cost minimisation
that occurs when staff and activities are relocated from headquarters to
overseas joint-ventures and collaborations where government support and
funding heavily subsidises project development spend. Some of the
Company's best scientists and engineers are now captured in these projects.
We will continue to nurture a socially responsible and collaborative
corporate culture and ensure our staff are kept informed and treated fairly
during the organisational transition.
Generally, areas for close attention and reduction are corporate overhead
and business development. To ensure that these targets are achieved, the
Company's independent directors have agreed to defer all directors fees
until we see these reductions materialise. As part of our measures we are
also seeking to move from a fixed cash remuneration structure for senior
management to alternative, long-term, non-monetary compensation.
Lastly, the Chairman and independent directors, after much consideration,
have concluded that in order to progress the proposed transformation of the
Company, the executive and board roles of the Company founders must be
changed. Discussions are underway and further details on this important
issue will be announced in the coming days. The Chairman and independent
directors have maintained a close relationship with the Company's major
commercialisation partners and believe all decisions announced today are in
the long-term best interests of all Dyesol's valued shareholders.
Yours sincerely,
Richard Caldwell
Chairman
Dyesol Ltd
The Company - DYESOL Limited
Dyesol is a global supplier of Dye Solar Cell (DSC) materials, technology
and know-how. DSC is a photovoltaic technology enabling metal, glass and
polymeric based products in the building, transport and electronics sectors
to generate energy and improve energy efficiency. Dyesol partners with
leading multinational companies who possess significant market share and
established routes-to-market. The company is listed on the Australian
Stock Exchange (DYE), the German Open Market (D5I), and is trading on the
OTCQX (DYSOY) through its depositary BNY Mellon. Learn more:
www.dyesol.comSubscribe to Mailing List and eNewsletter here.
The Technology - DYE SOLAR CELLS
DSC technology can best be described as 'artificial photosynthesis' using
an electrolyte, a layer of titania (a pigment used in white paints and
tooth paste) and ruthenium dye deposited on glass, metal or polymer
substrates. Light striking the dye excites electrons which are absorbed by
the Titania to become an electric current. Compared to conventional silicon
based photovoltaic technology, Dyesol's technology has lower cost and
embodied energy in manufacture, it produces electricity more efficiently
even in low light conditions and can be directly incorporated into
buildings by replacing conventional glass panels or metal sheets rather
than taking up roof or extra land area.
- Ends -
Media & Investor Relations Contacts:
Australia: Viv Hardy, Callidus PR Tel: +61 (0)2 9283 4113
Germany & Europe: Eva Reuter, DR Reuter Investor Relations Tel: +49 177
605 8804
USA & the Americas: Josh Seidenfeld, Antenna Group Tel: +1 415 977
1953, dyesol@antennagroup.com
Dyesol Headquarters: Angela Geary, Dyesol Brand Manager Tel: +61 (0)2
6299 1592, ageary@dyesol.com
End of Corporate News
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158559 29.02.2012
DGAP-News: Dyesol Limited: Company Update and Cancellation of Equity Line of Credit
| Source: EQS Group AG