- Reduces credit facilities to reflect completion of construction of
German PV cell manufacturing plant and increasing commercial
- Results in a reduction of standby fees by approximately $170,000 in
WATERLOO, ON, April 29 /CNW/ - ARISE Technologies Corporation (TSX: APV
and Frankfurt: A3T), which is dedicated to becoming a leader in
high-performance, cost-effective solar technology, today announced that, as
planned, it has revised its credit facilities with Commerzbank AG. This
revision will result in a reduction of standby fees during the balance of 2009
by approximately $170,000. In 2008, ARISE incurred $234,006 in standby and
The total credit facilities with Commerzbank amounting to Euro56.05
million have been reduced to Euro39.05 million with no changes to maturity
terms or interest rates. The revisions to these credit facilities and reasons
for the changes are as follows.
- The Euro9.5 million secured bank-credit facility intended for the
pre-financing of VAT refunds in Germany related to the construction
of ARISE's PV cell manufacturing plant in Bischofswerda, Germany,
including production Lines 1 and 2 is reduced to Euro2.0 million.
ARISE completed construction of the plant and Line 1 began commercial
production in June 2008 with Line 2 expected to do so in the second
quarter of this year subject to customer demand.
- The Euro15.0 million secured bank-credit facility intended for pre-
financing of investment grants and allowances in Germany related to
construction of the manufacturing plant and production line is
reduced to Euro11.5 million.
- The Euro10.0 million secured bank-credit facility intended to provide
working capital following the start-up of Line 1 is reduced to
- The Euro9.0 million secured bank-credit facility for the purchase of
silicon wafer inventory is reduced to Euro6.0 million and now can be
used for working capital purposes.
"The support of Commerzbank has been essential to our success in
establishing our PV cell manufacturing operations in Germany," said Dave
Chornaby, ARISE's Chief Financial Officer. "The credit facilities provided by
Commerzbank together with support from the German government enabled us to go
from concept to commercial production in less than two years and since then to
ramp up our output and establish our second manufacturing line. Now that we
have successfully progressed past the start-up stage, it is appropriate to
reduce the related credit facilities, as was intended when we negotiated the
financing with Commerzbank. We are pleased to be maintaining our strong
relationship with Commerzbank as we look forward to expanding our operations
About ARISE Technologies
ARISE Technologies Corporation, based in Waterloo, Ontario, is dedicated
to becoming 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 percent. The PV Silicon Division is using a proprietary method
to produce silicon at 7N+ high-purity (99.99999 percent) for PV applications,
based on a simplified chemical vapour 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 provides complete turnkey
PV solutions for solar farms and rooftop installations under the Ontario
Renewable Energy Standard Offer Program.
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.
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, uncertainties associated with legal proceedings and negotiations,
industry supply levels, competitive pricing pressures and misjudgments in the
course of preparing 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.
For further information:
For further information: ARISE Technologies Corporation, 65 Northland
Road, Waterloo, Ontario, Canada, N2V 1Y8, Dave Chornaby, Chief Financial
Officer, (519) 772-5732, Dave.Chornaby@arisetech.com, www.arisetech.com