Solar Thin Films, Inc. Announces Proposed Acquisition of 47% Equity Interest in Algatec Solar AG
February 01 2010 - 9:00AM
Marketwired
Solar Thin Films, Inc. (OTCBB: SLTZ) today announced that it
intends to acquire Algatec Equity Partners LP, which owns a 47%
equity interest in the capital stock of Algatec Solar AG, a growing
producer of silicon crystalline solar panels and modules. The stake
in Algatec will be obtained in exchange for approximately 43.0
million shares of Solar Thin Films common stock; which number of
shares are subject to adjustment based on an independent fairness
opinion. Solar Thin Films is also continuing negotiations with the
other Algatec stockholders to acquire the remaining 53% interest in
the capital stock of Algatec.
Headquartered in Prosen, Germany, Algatec sells its modules
primarily to a number of solar companies, including modules used in
power projects. The acquisition of the partnership and its equity
in Algatec is subject to (i) execution of definitive exchange
agreements, (ii) obtaining the requisite approvals and consents of
the partners of the partnership, and (iii) receipt of a fairness
opinion. Solar Thin Films anticipates that the acquisition of the
partnership and its 47% equity interest in Algatec will be
completed in approximately 30 days.
Algatec's revenues for 2009 are estimated to be USD $30,000,000,
with an estimated EBITDA of USD $2,000,000. Algatec has advised
Solar Thin Films that, based on its order backlog, Algatec believes
that it can realistically achieve USD $70,000,000 in revenues and
EBITDA of USD $8,400,000 in its fiscal year ending December 31,
2010. As a result of the material increase in anticipated orders,
Algatec has invested significantly in upgrading its equipment and
expanding its manufacturing facilities. This investment is expected
to increase production capacity from 18MW in 2008 to approximately
95MW in 2010, enabling Algatec to better meet the anticipated
increase in demand for its PV modules from its customers.
About Solar Thin Films, Inc.
Solar Thin Films (www.solarthinfilms.com) develops, manufactures
and markets a complete line of manufacturing equipment for the
production of "thin-film" amorphous silicon photovoltaic ("PV")
modules through its subsidiary Kraft Elecktronikai Zrt. based in
Budapest, Hungary. The Company sells both "turnkey systems" and
sub-systems to customers currently located in China, Spain and the
United States and has produced equipment for installations in the
US, Germany, Portugal, Taiwan, Greece and Spain. The Company
believes that its line of thin-film photovoltaic manufacturing
equipment positions it to take advantage of the rapidly growing
demand for solar modules and an expected market shift towards
"thin-film" PV modules as part of a cost effective, "clean
technology" energy solution.
Forward-Looking Safe Harbor Statement
Statements in this news release regarding future financial and
operating results, potential applications of the Company's
technology, opportunities for the Company, and any other statements
about the future expectations, beliefs, goals, plans, or prospects
expressed constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Any
statements that are not statements of historical fact (including
statements containing the words "will," "believes," "plans,"
"anticipates," "expects," "estimates," and similar expressions)
should also be considered to be forward-looking statements. There
are a number of important factors that could cause actual results
or events to differ materially from those indicated by such
forward-looking statements including: limited operating history,
need for future capital, and economic conditions generally.
Additional information on potential factors that could affect
results and other risks and uncertainties are detailed from time to
time in the Company's periodic reports, including Forms 10-K, 10-Q,
8-K, and other forms filed with the Securities and Exchange
Commission ("SEC").
These statements, and other forward-looking statements, are not
guarantees of future performance and involve risks and
uncertainties.
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