DayStar to Pursue CIGS Production Offshore

DayStar Technologies, Inc., a developer of solar photovoltaic products based on CIGS thin-film deposition technology, announced it is pursuing a strategy for offshore manufacturing of its CIGS solar modules.

“While DayStar has accomplished significant innovations with our CIGS process and technology, we have encountered challenges in obtaining affordable capital for the build-out and operation of our facility in Newark, CA,” DayStar CEO Magnus Ryde commented. “At this time, we are pursuing opportunities to manufacture our CIGS modules offshore and have begun discussions with several potential partners to implement this strategy. We are encouraged by the high caliber of the potential partners we are in discussions with. They understand the commercial potential for our CIGS modules and they bring substantial manufacturing and financial capabilities to the table. Those potential partnerships, if consummated, could include joint ventures, licensing agreements, contract manufacturing agreements, a reverse merger with or an acquisition of DayStar. We are confident in our core proprietary CIGS technology and believe that completing a transaction with a strategic partner and manufacturing our CIGS modules offshore would provide the best opportunity to bring our product to market and to manufacture the product in the most cost effective manner.

“In addition to the potential partnership discussions mentioned above, we disclosed on May 3, 2010 that DayStar entered into an agreement with Dynamic Worldwide Solar Energy LLC to provide DayStar with a series of loan commitments and at least one fully funded 25MW solar energy project,” Ryde added. “Under the terms of that agreement, Dynamic has proposed to assign to DayStar its interest in a fully financed contract to fabricate, construct and install, and commence the operation of, a 25 MW solar energy generation plant. We are actively working with Dynamic on these projects. If consummated, these projects will add a new ‘downstream’ dimension to DayStar and allow us to become a fully integrated solar energy company. DayStar’s acceptance of the assignments is subject to applicable due diligence.”

As disclosed in a Form 8-K filing last night with the SEC, DayStar was notified by its landlord, BMR-Gateway Boulevard LLC, that the company’s lease for the premises located at 7333-7373 Gateway Boulevard in Newark, CA has been terminated.