SunSi Energies Inc. ("SunSi"), an international manufacturer, seller and distributor of energy products and technologies, announced it has acquired the exclusive North American rights to distribute high performance light emitting diode (LED) products used in a wide array of applications. These products are manufactured by the highly respected Shanghai Lightsky Optoelectronics Technology Co., Ltd. located in Shanghai, China ("Lightsky").
Lightsky is a leading LED manufacturer for large commercial and institutional users with a strong product portfolio ranging from illumination LED lighting, to LED video display systems and architectural LED lighting. Lightsky also manufactures products for consumer use. Lightsky has deployed its products in major projects including the Shanghai International Airport, the 2010 Shanghai World Expo, Hong Kong University and the Shanghai Metro Station. Lightsky holds a series of design and utility patents, and certificates including ISO9001, CE, Rohs, and other international certifications and qualifications. Lightsky's high quality LED products incorporate high quality diodes combined with proprietary circuitry, electronics and quality assembly, to produce superior products.
To acquire these rights to distribute Lightsky's LED products, SunSi paid $750,000 in restricted common stock in return for the exclusive rights in North American territories, including the United States, Canada and Mexico. In order to maintain exclusivity for the five year period and for the automatic renewal periods, SunSi must achieve certain performance milestones.
A Light Emitting Diode ("LED") is a semiconductor device that converts electricity into light. The LED light is considered "green" because of the absence of dangerous chemicals like mercury and minerals in the product and an accompanying significant reduction in energy consumption depending on the application, from 50% to 80% of traditional lighting products. It is expected that over the next 5-10 years, the U.S. and the world will transition from incandescent and fluorescent fixtures to LED technology, which is superior in terms of lifecycle, operating costs and energy consumption. It is estimated by the U.S. Department of Energy that there are over 2.5 billion fixtures in commercial and industrial properties throughout the USA. The replacement cost of these fixtures could exceed one trillion dollars.
SunSi plans to capitalize on this enormous market opportunity by leveraging Lightsky's reputation, technology and quality products to penetrate numerous markets it has already identified. SunSi plans to offer a wide range of LED products for large consumer retail chains, commercial office space, warehouses, parking facilities, stadiums and arenas, exterior building facades, airports, and for LED fluorescent replacement lighting.
Richard St-Julien, SunSi's Chairman, stated, "We are delighted to further diversify our green and renewable energy business in North America through this new exceptional distribution relationship with a leading world-class LED products manufacturer. Lightsky's products have a long lifecycle and a high ROI, as they have been proven to substantially reduce energy consumption in large scale and small deployments. This is our second significant transaction in 2012 and is only the beginning of our expansion process. We have other significant synergistic opportunities that we are working on and expect to consummate before the end of 2012."
