WATERLOO, ON, May 11 /CNW/ - ARISE Technologies Corporation (TSX: APV
and Frankfurt: A3T), ("ARISE" or "the Company"), a leader in
high-performance, high quality, cost-effective solar technology, today
announced that on May 6, 2011, the Company closed a US$750,000 bridge
loan ("Loan") from Haverstock Master Fund, Ltd. (the "Lender"). The
purpose of the Loan is to provide working capital bridge financing to
the Company. The Loan matures on September 30, 2011 and bears interest
at a rate of 10% per annum which rate increases by 1% for each month
the Loan is outstanding.
The Company also issued to Haverstock 750,000 share purchase warrants.
Each share purchase warrant is exercisable for a period of 2 years into
one common share at an exercise price of $0.21 per share. The Loan is
secured with a general security agreement on the assets of the
Company. In the event that the Company does not repay the Loan by
September 30, 2011, the Lender has the option to convert the Loan into
ARISE common shares at up to a 20% discount to the preceding five day
Volume Weighted Average Price of the common shares on the TSX.
Update on Discussions with Commerzbank
In addition, ARISE today provided an update regarding its discussions
with Commerzbank AG ("Commerzbank" or the "Bank"). The Trust Agreement
with the Bank expired on April 29, 2011. Commerzbank has agreed to
extend the standstill agreement to June 30, 2011 as a result of the
Company reducing its working capital credit line down to €8.6million.
ARISE and Commerzbank continue discussions to reach a longer term
"We are pleased to now have in place this extension to our credit
facilities with Commerzbank," said Dan Shea, ARISE's President and
Chief Executive Officer.
Haverstock is an institutional investor with an investment objective to seek capital appreciation through the general
strategy of investing in public securities of U.S. and non-U.S.
companies, through direct equity purchases from such companies. The
portfolio manager of Haverstock, David Ratzker, has structured more
than US$300 million worth of private equity investments in publicly
traded corporations in a variety of sectors including energy,
cleantech, telecommunications, consumer, and education.
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.
SOURCE ARISE Technologies Corporation
For further information:
| ARISE Technologies Corporation |
| 65 Northland Road, Waterloo, Ontario, Canada N2V 1Y8 |
| Doug McCollam, Chief Financial Officer, (519) 772-5706 |
| Doug.McCollam@arisetech.com |
The Equicom Group
(416) 815-0700 ext. 272