- Category: Finance
04 Mar 2013
- Published on Monday, 04 March 2013 09:09
- Hits (2709)
Saudi Arabian industrial company Tasnee and Australian technology company Dyesol have entered a strategic investment agreement by which Tasnee will invest $4 million Australian dollars in Dyesol’s operations.
The investment will be made in the form of a 15-month redeemable loan note, convertible into Dyesol shares at 16.6 cents power share, with a 0 percent coupon (as is required by Saudi Arabian law).
In addition, Tasnee and Dyesol will be discussing a number of partnership and investment possibilities focused in potential demonstration projects using dye solar cells in the Middle East.
Under a subscription agreement, Tasnee will have the right to invest up to $20 million Australian dollars in Dyesol during a six-month exclusivity period at 18 cents per share. To the extent that investment is beyond 20 percent ownership in Dyesol and/or exceeds capacity under ASX Listing Rule 7.1, the strategic investment will require shareholder approval.
Dyesol, on the other hand, will conduct a share purchase plan at 16.6 cents per share to raise a further $2 million Australian dollar to participate in investment alongside Tansee.
Dyesol’s executive chairman, Richard Caldwell, welcomed the investment by Tasnee.
“Tansee has demonstrated great commitment to the successful commercialization of our Dye Solar Cell technology, both through participation in long-term R&D programs and now in its expression of intent by investment in a convertible note. Tasnee has a very strong balance sheet and interest to diversify its activities into renewable energy,” said Mr. Caldwell.
Dyesol specializes in providing materials and knowledge on dye solar cell technology, a third generation photovoltaic technology that use “artificial photosynthesis” to generate renewable energy from light (see related story).
A dye solar cell uses a layer of semiconducting material to convert light to energy. Dyesol’s cells use titanium dioxide as the semiconducting material.
Tasnee, also known as The National Industrialization Company of Saudi Arabia, is the second largest industrial company in Saudi Arabia and the second largest producer of titanium dioxide in the world with several titanium mines in Australia.
Tasnee’s subsidiary, Cristal has been working with Dyesol U.K. since 2009 to develop nano-titania for use in Dyesol’s project with Tata Steel Europe to develop solar generating steel roofing. – EcoSeed Staff