NEW YORK, June 15, 2011 (GLOBE NEWSWIRE) -- SunSi Energies, Inc. ("SunSi") (OTCQB:SSIE), a specialty chemical provider to the solar industry, announced today that the 40% equity shareholder of the Company's Wendeng trichlorosilane (TCS) facility in Weihai City, China has waived his right of redemption and elected to retain 1,349,628 additional shares of SunSi common stock. The shareholder's action eliminates the requirement that SunSi raise $2.7 million to redeem the shareholder's common stock.
Under the terms of the March 18, 2011 Wendeng acquisition agreement, the 40% shareholder was issued 1,349,628 shares of the Company's redeemable common stock. These shares could have been redeemed by the 40% shareholder beginning September 18, 2011 which would have required SunSi to repurchase these shares for approximately $2.7 million dollars. On June 14, 2011, the shareholder waived his right of redemption and has elected to retain his SunSi shares.
As part of the Wendeng agreement, SunSi was also required to make a payment of $445,075 to the 40% shareholder of Wendeng, no later than June 18, 2011. SunSi made this payment well in advance of the due date, and has now completely fulfilled the financial requirements associated with this acquisition agreement.
David Natan, SunSi's Chief Executive Officer, stated, "We are delighted that our Wendeng partner has chosen to hold his shares and not redeem them. His actions send a tremendous vote of confidence, and now enables us to focus on raising expansion capital to grow the Wendeng facility from its current capacity of 22,000 metric tons to 75,000 metric tons."
Richard St-Julien, President and Chairman of Chinese Operations, stated, "We are fortunate to work with a Wendeng management team and shareholder that see our vision and is intent on doing everything possible to increase shareholder value. Our recently initiated investor relations campaign intended to gain visibility for SunSi, is now starting to bear fruit. We are confident in our business plan and the direction of our business."
About SunSi Energies Inc.
SunSi Energies Inc. (OTCQB:SSIE) acquires and develops high quality TCS production facilities that are strategically located and possess a potential for future growth and expansion. U.S-based SunSi controls approximately 47,000 metric tons of TCS production in China, and is believed to be the first and only "pure play", TCS-centric public company in the world.
TCS is a chemical primarily used in the production of polysilicon, which is an essential raw material in the production of solar cells for PV panels that convert sunlight to electricity. TCS is considered to be the first product in the solar PV value chain before polysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry. For additional information, please visit our website at: www.sunsienergies.com.
This news release contains forward-looking statements related to the future financial condition and results of SunSi's operations.
Forward looking statements are based on SunSi's current expectations and estimates regarding: TCS markets and industry in which we operate being the most profitable segment of the solar value chain, management's beliefs and assumptions regarding these markets, approximately 75% of the current worldwide use of TCS based PV panels, increasing trading volume and price of SunSi's stock, future growth prospects, future earnings and revenue projections, the percentage of solar panels requiring TCS, completion of our Wendeng expansion plan, the size of SunSi's TCS capacity compared to other Chinese TCS companies, and other acquisition transactions. These statements are subject to important risks and uncertainties, which are difficult to predict, and assumptions which may prove to be inaccurate.
Some of the factors that could cause results or events to differ materially from current expectations include, but are not limited to: general economic conditions, market or business conditions; general stock market performance, the performance of the solar industry in general, changing competitive environment; changing regulatory conditions or requirements; changing technology; raising sufficient capital to pay the Wendeng shareholder and fund the expansion of Wendeng to 75,000 MT, the price of TCS sold within China and outside of China, attaining projected revenue of $20-$25 million per year at Wendeng, the level of production by the Wendeng factory, Baoaki's success in attaining new clients under its distribution agreement, and success in implementing productivity initiatives.
Some of these factors are largely beyond the control of SunSi. Should any factor impact SunSi in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. All of the forward-looking statements made in this document are qualified by these cautionary statements, therefore, there can be no assurance that the results or developments anticipated by SunSi will be realized or, even if substantially realized, that they will have the expected consequences for SunSi. Readers should not place undue reliance on any forward-looking statements. Furthermore, SunSi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other occurrence.
CONTACT: Investor Relations: Acorn Management Partners, LLC John R. Exley, III Direct 678-368-4002