DayStar Technologies Inc (DSTI) of Kelowna, BC, Canada, which was founded in California in 1998 to make copper indium gallium diselenide (CIGS) thin-film photovoltaic modules, says that it is negotiating the potential sale of its CIGS solar technology, equipment and patent library with PacWest Equities Inc (PWEI), which solar energy to naturally grow animal bio-feed and organic foods on mobile units. The deal is subject to completion of due diligence (which has been on-going since December) and DayStar’s board approval of the transaction.
DayStar says that the deal would only be for CIGS technology assets, including its proprietary manufacturing process to produce low-cost monolithically integrated, silicon-free CIGS-on-glass modules addressing the grid-tied, ground-based PV market as well as the building-integrated photovoltaic (BIPV) market.
The firm developed its CIGS photovoltaic module based on its proprietary one-step CIGS deposition process. The CIGS module addresses the construction market’s need to be compatible with solar’s largest growth area, i.e. building integration and the most rapidly growing market for thin-film solar (BIPV).
The technology is also of interest to PacWest Equities subsidiary World EcoSource, a technology-based firm that has developed the MobileFeed and MobileFood systems, which help to offset deficient worldwide food production for both animals and humans.
“This proposed deal with PacWest would be a no-lose transaction for DayStar,” believes DayStar’s president Lorne Roseborough. “This strategy fits well with the company’s go forward plan as disclosed in our PRE 14A,” he adds. In the preliminary proxy statement (filed with the US Securities and Exchange Commission on 21 January), DayStar said that the transition would benefit it financially from PacWest’s revenue-generating opportunities using DayStar’s technology. The deal is expected to generate proceeds of up to $10m from an equity deal and royalty revenue streams from a sinking fund worth a total of $27m. Upon review, the board will seek approval to issue a stock dividend of up to 100% of the sale proceeds to DayStar’s existing stockholders.
DayStar says that the transition would not only relieve it from further needed investment towards completion of its facility, but also provide it with funding to support its new growth strategy. Earlier this month, DayStar’s board approved the acquisition of a 20% equity stake in Premier Global Holdings Corp of Kelowna, BC, Canada, which has demonstrated solar cells that are claimed to be the first to combine energy generation and power storage in one cell.
In the preliminary proxy statement, DayStar said that, in the event that the sale to PacWest does not materialize, it may consider licensing its CIGS technology to PacWest or other interested parties in return for a royalty, since such an arrangement may be more preferable in creating long-term value while allowing it to maintain ownership in the technology.
