Solar EnerTech Acquires Stake in 21-Century Silicon; Secures Future Silicon Supply
September 08 2008 - 8:30AM
PR Newswire (US)
MENLO PARK, Calif., Sept. 8 /Xinhua-PRNewswire-FirstCall/ -- Solar
EnerTech Corp. (OTC:SOEN) (BULLETIN BOARD: SOEN) (the "Company")
today announced that the Company has entered into an equity
purchase agreement in which it acquired two million shares of
common stock of 21-Century Silicon, Inc., a polysilicon
manufacturer based in Dallas, Texas ('21-Century Silicon") for $1
million cash. The two million shares acquired by the Company
constitute approximately 7.8% of 21-Century Silicon's outstanding
equity. The equity purchase agreement further provides that the
Company would acquire an additional two million shares upon
21-Century Silicon meeting certain milestones. Under the terms of
this agreement, the Company acquired two million shares of newly
issued common stock at a purchase price of $0.50 per share, and
would acquire an additional two million shares at the same per
share price upon the first polysilicon shipment meeting the quality
specifications determined solely by the Company. Related to the
equity purchase agreement, the Company has also signed a MOU with
21-Century Silicon for a four-year supply framework agreement for
polysilicon shipments. The first material polysilicon shipment from
21-Century Silicon is expected in the second quarter of 2009. Based
in Dallas, Texas, 21-Century Silicon is a privately held company
that was founded by a group of semi-conductor industry veterans in
2005. Through its proprietary technology, processes and methods,
21-Century Silicon is seeking the ability to manufacture
solar-grade polysilicon at a lower manufacturing and plant setup
cost, as well as a shorter plant setup time than those of its major
competitors. If its manufacturing goals are met, 21-Century
Silicon's customers, in turn, will benefit from the company's major
cost advantages and will receive a high-purity product at a price
significantly lower than that offered elsewhere within the
industry. 'Our relationship with 21-Century is a positive
development for our business and further increases the visibility
of our production supply,' commented Leo Young, Chief Executive
Office of Solar EnerTech. 'We are pleased to take this first step
towards vertical integration with this agreement, and at the same
time, to secure a polysilicon supply source at a time when demand
and prices remain high. Polysilicon is a major expense for the
production of our solar cells and modules and this relationship is
designed to ensure that we have a steady polysilicon supply at a
reasonable cost. It can also allow us to reduce our short term
polysilicon supply contracts, and thus beneficially impact our
overall margin performance.' Peter Mei, Chief Executive Officer of
21-Century Silicon said, "We are excited to provide Solar EnerTech
with our high-quality polysilicon to help meet the rising energy
demands in the world today. Solar EnerTech develops quality
products for an increasingly base of customers and we are pleased
to be able to help the company meet the growing demands of its
customer base. The synergy between our management teams has been
very strong and we look forward to strengthening our relationship
going forward.' About Solar EnerTech Corp. Solar EnerTech is a
photovoltaic ("PV") solar energy cell manufacturing enterprise
based in Shanghai, China, where the Company has established a
sophisticated 63,000 square foot manufacturing plant in Shanghai's
Jinqiao Modern Technology Park. Currently, the Company is capable
of producing 25MW of solar cells from its existing production line
and the Company is in the process of completing its second 25MW
production line to better utilize capacity and meet expected future
customer demand. Solar EnerTech has also established a Joint
R&D Lab at Shanghai University to research and 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. The Company has also established a
marketing, purchasing and distribution arm in Northern California's
Silicon Valley. 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), for Solar EnerTech Corp.
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