WATERLOO, ON, Sept. 15, 2011 /CNW/ - ARISE Technologies Corporation
(TSX: APV and Frankfurt: A3T) ("ARISE" or the "Company"), which is a
leader in high-performance, high-quality, cost-effective solar
technology, today announced that the Company closed a $500,000 bridge
loan ("Bridge Loan") from Radiant Offshore Fund Ltd and Radiant Performance
Fund LP (collectively "Radiant"). The purpose of the Loan is to provide
working capital bridge financing to the Company. The Loan matures on
December 14, 2011 and bears interest at a rate of 10.0% per annum.
The Company also agreed to issue to Radiant 3,499,897 share purchase
warrants. Each share purchase warrant is exercisable for a period of 6
years into one common share at an exercise price of $0.055 per share.
The Bridge Loan is secured with a general security agreement on the
assets of the Company.
The Company intends to use the proceeds to augment its working capital
position during its strategic alternatives discussions.
In addition, the Company and Radiant entered into an amending agreement
in respect of the share purchase warrants issued to Radiant in July.
In consideration for Radiant agreeing to subordinate its security
position in the Company's assets in certain circumstances, the Company
has agreed to reduce the exercise price of the 66,666,667 share
purchase warrants issued to Radiant in July to $0.055 from $0.10.
Certain repayment and warrant cancellation features of the previous
financing were also amended.
Update on Commerzbank Agreement
The Company today also announced that discussions are continuing with
the parties involved in the extension of its standstill agreement with
Commerzbank AG. ARISE management will provide an update on the progress
of these discussions when an agreement is finalized.
"I'm pleased with the cooperation of Commerzbank as we work through our
strategic discussions," commented Dan Shea, ARISE's President and CEO.
About Radiant Investments
Radiant Investment Management Ltd. (RIML) is an event-driven hedge fund
that employs a variety of strategies to generate alpha returns for its
investors. RIML made their first investment in Arise Technologies in
June 2010 and continues to be supportive of management and their
direction. RIML's head office is located in Toronto, Canada and RIML
has onshore and offshore funds.
About ARISE Technologies
ARISE Technologies Corporation, based in Waterloo, Ontario, is a leader
in high-performance, cost-effective solar technology. The company
operates through three divisions. The PV Cell Division manufactures PV
(photovoltaic) cells at its first manufacturing plant opened in April
2008 in Bischofswerda, Germany. The division is developing proprietary
technology with a target of achieving a step-by-step progression to a
high-efficiency level of greater than 20%. The PV Silicon Division is
using a proprietary method to produce silicon at 7N+ high-purity
(99.99999% purity) for PV cell applications, based on a simplified
chemical vapor deposition process. The division is focusing on scaling
up its process to provide ARISE with control over its supply, costs,
and quality. The PV Systems Division has been providing rooftop and
ground-mounted PV solutions since 1996. ARISE is planning to expand its
systems business in Ontario under the Ontario FIT (Feed-In Tariff)
The company's shares are listed on the Toronto Stock Exchange under the
symbol APV and on the Frankfurt Open Market Exchange under the symbol
A3T. Additional information is available at www.arisetech.com and www.sedar.com.
Forward-Looking Statements and Risk Factors
Certain statements in this news release may be considered to be
forward-looking. Such statements are based on management's current
expectations, estimations, and assumptions based on experience, trends,
and other factors that are subject to the significant risks and
uncertainties described in our regulatory filings. Please refer to
these. Such risks and uncertainties may include, but are not limited
to, the effects of general economic conditions, changing foreign
exchange rates, actions by government authorities, the requirement for
additional capital, risks associated with manufacturing, industry
supply levels, competitive pricing pressures and misjudgements in the
course of preparing forward-looking statements.
Risk factors relating to ARISE are discussed in the Risk Factors section
of the (final) prospectus supplement, ARISE's Annual Information Form
and under the headings Liquidity and Capital Resources and Risk and
Uncertainties in ARISE's year-end Management's Discussion and Analysis
which are or will be available at www.sedar.com. These factors should be considered carefully, and readers should not
place undue reliance on ARISE's forward-looking statements.
ARISE assumes no obligation to update any forward-looking statements or
to update the reasons why actual results could differ from those
reflected in the forward-looking statements.
ARISE Technologies Corporation
65 Northland Road, Waterloo, Ontario, Canada N2V 1Y8
Doug McCollam, Chief Financial Officer, (519) 772-5706
SOURCE ARISE Technologies Corporation
For further information:
The Equicom Group
(416) 815-0700 x272