DayStar Technologies Inc., a developer of solar photovoltaic products, has entered into a $5 million securities purchase agreement with Socius CG II Ltd., a subsidiary of Socius Capital Group.
Under the agreement, DayStar has the right over a term of two years, subject to certain conditions, to require Socius to purchase up to $5 million of redeemable Series B preferred stock. With each purchase, Socius will receive two-year warrants to purchase shares of the company's common stock valued at 35% of the preferred stock amount.
DayStar also announced that it has extinguished an additional $3.6 million in debt from its balance sheet through the conversion to equity of certain convertible notes payable, as well as agreements with vendors to settle their liabilities in exchange for shares of DayStar's common stock.
‘We have nearly completed our balance-sheet restructuring and other activities to enhance our ability to pursue strategic transactions,’ says CEO Magnus Ryde.
SOURCE: DayStar Technologies Inc.