CUPERTINO, Calif., June 29, 2010 (GLOBE NEWSWIRE) -- Solargen Energy, Inc., a California-based solar power developer ("Solargen" or the "Company"), trading over-the-counter (www.otcmarket.com) under the stock symbol SLGE.PK (Pink Sheets:SLGE), today announced the issuance of 4,121,539 shares of the Company's Series B Convertible Preferred Stock, at a price of $1.00 per share, plus warrants to purchase an additional 4,121,539 shares of Series B Convertible Preferred Stock, with an exercise price of $1.00 per share.
The Series B Preferred Stock and warrants were issued pursuant to the sale of $3,000,000 of Series B Preferred Stock to two private investors, UMC Capital Corporation and Chinatrust Venture Capital Corp., and the conversion of over $1.1 million in outstanding convertible loans (the "Series B Financing"). The Series B Preferred Stock and warrants have the right to convert into the Company's common stock. For more information, see the Company's Current Report filed with www.otcmarkets.com on June 29, 2010.
"We are delighted to have the continued support of UMC Capital Corporation, and welcome Chinatrust Venture Capital Corp. as a value-added investor with large financial resources. Both UMC and Chinatrust share our vision for Solargen to become a leading developer of utility scale solar farms in the United States," said Michael Peterson, Chairman and CEO of the Company.
Mr. Peterson noted that "this infusion of capital comes as we are preparing to enter the next critical stage of development and approval of our 420 MW Panoche Valley Solar Project (the "Project"). The retirement of all of our outstanding bridge loans and its conversion into equity provides the Company with valuable financial flexibility and liquidity."
"Over the past year Solargen has accomplished many significant milestones toward becoming a leader in the development of utility scale solar farms. We have secured over 16,000 acres of privately owned grazing land, which can be used for both solar development and environmental mitigation. Over the past 16 months, the majority of our time and resources have been used to perform the biological studies, analysis and research necessary to complete an environmental impact report ("EIR") and receive the necessary permits for our Project. We are pleased to announce that on Monday, June 28, 2010, the County of San Benito released the draft EIR of the Project to the public. We look forward to following the timeline necessary to finalize the EIR and move toward approval of the Project this Fall.
"California has set a Renewable Portfolio Standard ("RPS") where 33% of its power is mandated to come from renewable sources by 2020. Solar power installations on large-scale solar farms, commercial buildings and residential homes will all be needed to meet this RPS goal. Solar power technology keeps the air clean while generating electricity. Clean technology like solar not only benefits the quality of our own individual lives, but will provide a critical long-term benefit to the earth and the entire species of plants and animals that live on it. Solargen is committed to the great benefit derived from clean solar power. We also understand that to obtain this clean, safe form of electricity, there will be a necessity to have some local impacts. To that end, we are striving to design and construct this solar farm in a way that will minimize adverse impacts while bringing much-needed economic benefits to the local community.
"Large solar farms drive solar panel production and innovation, which in turn lowers the long-term cost of solar power and enables its more economical use in commercial and residential installations. Although these utility scale solar farms are a necessary building block for the industry, access to the power grid has proven to be a bottleneck to their development. One of the great attributes of our solar farm site is its access to power lines that run directly over the project. Recent power flow studies of these transmission lines have indicated that they may have the capacity to transmit our entire planned 420 MW production with few, if any, upgrades. We have filed a 20 MW interconnect application, which is slated to be approved this Fall, as well as a 400 MW interconnect application targeted for approval in late 2011 or early 2012. Both of these targeted approvals align with our planned building schedule.
"Lastly, with the Project in its advanced development stages we are currently meeting with utilities regarding power purchase agreements as well as EPC contractors to partner with us in the construction and financing of the project.
"We are enthusiastic about what the Solargen team has accomplished so far and are optimistic about the future planned growth of the Company. To help advise us in this growth, we have invited and are pleased to announce the appointment of G. Robert Powell to the Board of Directors."
Mr. Powell currently serves as President and Chief Executive Officer of Solar Power Partners (SPP), a premier independent solar power producer. SPP develops, owns, and operates distributed solar energy facilities and sells solar-generated electricity energy financing. SPP has over 40 completed projects totaling over 14 MW of commercial solar systems in operation. Mr. Powell oversees all operational, financial, and project development functions at Solar Power Partners (SPP). Mr. Powell was previously a Vice President and Chief Financial Officer of Pacific Gas and Electric Company, the utility division of PG&E, which provides gas and electric services to over 5 million customers in California. During his tenure as CFO of PG&E, the company completed both long and short-term financings in addition to executing power purchase contracts in the solar, wind, and biomass sectors. Prior to PG&E, Mr. Powell was a Partner in the national energy practice of PricewaterhouseCoopers LLP and a Partner in the worldwide energy and communications practice of Arthur Andersen LLP, where he managed numerous project financing transactions. He is a CPA and holds a BS in Electrical Engineering and an MS in Management, both from the Georgia Institute of Technology.
"Mr. Powell will provide experienced management, solar development expertise and strong industry knowledge to the Solargen Board. We look forward to benefiting from his strong leadership skills and proven track record in solar development," said Michael Peterson, Chief Executive Officer of Solargen Energy, Inc.
About the Investors
UMC Capital Corporation and Chinatrust Venture Capital Corp were lead investors in the Series B Preferred Stock financing.
UMC Capital Corporation was established in February 2001 as the direct investment arm of UMC, a world leading Taiwanese semiconductor foundry. By leveraging the resources of UMC and its affiliates, UMC Capital Corporation is well positioned to deliver significant strategic value to startup companies. The mission/objectives of UMC Capital Corporation are: identifying innovative technologies, forming mutually productive relationships with entrepreneurs, exploring and expanding emerging applications and earning financial returns for its parent company UMC. UMC Capital Corporation was the previous lead investor in Solargen's Series A Preferred Stock round of financing.
Chinatrust Venture Capital Corp. (CVCC), the other lead investor in the Series B Financing, is a subsidiary of Chinatrust Financial Holding Co., Ltd. (CFHC), one of Taiwan's largest financial services groups. Founded in March 2003, Chinatrust Venture Capital was CFHC's first foray into the venture capital market. CVCC invests mainly in information technology, communications, biotechnology, medical and health care, alternative energy and energy-saving ventures, as well as companies in traditional industries that have performed reasonably well and shown great potential to grow further. Leveraging CFHC's vast pool of resources, CVCC's top-notch management professionals are well positioned to give startups a big push on the path toward rapid growth.
About Solargen Energy, Inc.
Solargen Energy is a U.S.-based, publicly-traded solar development company engaged in the development, production and operation of environmentally friendly, large scale, solar projects to deliver electricity to utilities and industrial customers. The Company is headquartered in Cupertino, California.
Forward-Looking Statements
This press release contains forward-looking statements relating to Solargen's business. These statements and other statements contained in this press release that are not purely historical fact are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on management's beliefs, certain assumptions and current expectations. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)," and similar expressions and statements about Solargen's market opportunities, future plans and performance, objectives and expectations with respect to future operations and solar development activities, and financial projections and estimates and their underlying assumptions, are all forward-looking statements subject to risks and uncertainties, including, but not limited to: the timing and success of Solargen's solar development efforts, and the ability to raise capital to pursue our business strategy. Readers are cautioned not to place any undue reliance on these forward-looking statements. Actual results may differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. The forward-looking statements contained in this press release are made as of the date hereof, and Solargen does not undertake any obligation to update any forward-looking statements to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of Solargen.