DayStar Technologies Inc. (Halfmoon, NY), a developer of photovoltaic products, announced that it will redeem its outstanding Class A public warrants. The deadline for Class A public warrant holders convert to common stock before the warrant is redeemed by DayStar is August 8, 2005. Failure to exercise the right to convert the Class A public warrant to a common share at $6.00 will allow DayStar to redeem the Class A public warrant at $0.25 per warrant. The closing price of DayStar's common stock on June 20, 2005, was $15.42 and the closing price of the Class A public warrants was $9.45.
There have been 2,757,492 Class A public warrants issued in conjunction with DayStar's initial public offering and a subsequent financing. The Class A public warrants are convertible into common stock at an exercise price of $6.00 per share. Since May 2005, 1,162,527 Class A public warrants have converted to common stock and the company has received $6,975,162 in proceeds from the conversion. If the remaining 1,594,965 Class A public warrants convert to common stock, the company could receive an additional $9,569,790 in proceeds.
The money will be used to complete the build-out of the facility in Halfmoon, NY; fund startup costs related to ramping up production, accelerate development of and transition to the next generation of production; and for general operating costs and corporate purposes.
