06.13.18
Greatcell Solar advised that it is nearing completion of the financing of its continuing operations, including the establishment of a world-class prototype facility, and expects to complete a US$8 million capital raising and associated equipment supply and technology transfer agreement in the next 10 to 15 business days.
In March, the company elected to undertake voluntary suspension pending the financing of its A$10M- $12M Major Area Demonstration (MAD) prototype facility at CSIRO in Melbourne. The decision by the board was taken to bring multiple stakeholders to the negotiating table, including local and international governments, and international investors, in a coordinated and diligent way. It has taken longer than expected, but the outcome is very pleasing.
Those negotiations have now been completed and have three key elements:
1. A US$2.025 million signed equipment supply and technology transfer contract to Gunes PSC of Turkey.
2. A US$8 million signed subscription agreement for a 10% strategic investment in GSL by CER Grup of Turkey.
3. The new investment releases financial support from the Australian government of a minimum of A$15 million through grants and R&D rebates.
The financing component, involving the placement to a strategic partner and funding by the Australian government, is expected to provide a minimum of A$25 million for the company, which will enable it to execute its business plan to the end of CY2019 and beyond. In particular, it allows the Major Area Demonstration (MAD) prototype project to be completed and subsequent pilot production to commence.
Critical to the Company’s business plan is the intention to form a commercialization joint-venture in Turkey with local industry to service the country’s burgeoning demand for renewable energy generation.
“We are very pleased to have closed on an international commercialization partnership,” managing director Richard Caldwell said. “Turkey as a market has all the necessary attributes for the collaboration to be highly successful. The deal is timely and well placed to exploit the global market place.”
In March, the company elected to undertake voluntary suspension pending the financing of its A$10M- $12M Major Area Demonstration (MAD) prototype facility at CSIRO in Melbourne. The decision by the board was taken to bring multiple stakeholders to the negotiating table, including local and international governments, and international investors, in a coordinated and diligent way. It has taken longer than expected, but the outcome is very pleasing.
Those negotiations have now been completed and have three key elements:
1. A US$2.025 million signed equipment supply and technology transfer contract to Gunes PSC of Turkey.
2. A US$8 million signed subscription agreement for a 10% strategic investment in GSL by CER Grup of Turkey.
3. The new investment releases financial support from the Australian government of a minimum of A$15 million through grants and R&D rebates.
The financing component, involving the placement to a strategic partner and funding by the Australian government, is expected to provide a minimum of A$25 million for the company, which will enable it to execute its business plan to the end of CY2019 and beyond. In particular, it allows the Major Area Demonstration (MAD) prototype project to be completed and subsequent pilot production to commence.
Critical to the Company’s business plan is the intention to form a commercialization joint-venture in Turkey with local industry to service the country’s burgeoning demand for renewable energy generation.
“We are very pleased to have closed on an international commercialization partnership,” managing director Richard Caldwell said. “Turkey as a market has all the necessary attributes for the collaboration to be highly successful. The deal is timely and well placed to exploit the global market place.”