Solar EnerTech Announces Changes to and Automatic Conversion of all Series A and Series B Convertible Notes and Changes to Serie
January 08 2010 - 8:00AM
PR Newswire (US)
-- New Capital Structure Positions Company for Continued Growth -
-- Two Members Added to Board of Directors -- MOUNTAIN VIEW,
Calif., Jan. 8 /PRNewswire-Asia-FirstCall/ -- Solar EnerTech Corp.
(OTC:SOEN) (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each Note no longer represents a right to receive any cash payments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 EnerTech." 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. DATASOURCE: Solar EnerTech Corp.
CONTACT: Bill Zima of ICR Inc., +1-203-682-8200 (Investor
Relations)
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