Solar EnerTech Corp (OTCBB: SOEN) announced an equity purchase agreement with 21-Century Silicon, Inc, a privately-held Dallas-based polysilicon manufacturer. The company bought two million common stock shares for $1 million, with a provision to buy two million more if the first polysilicon that 21-Century ships meets quality specifications of the Shanghai-based Solar EnerTech. The first material polysilicon shipment is expected in the spring of 2009.
A second, following element of the purchase agreement is a memorandum of understanding for a four-year deal to supply polysilicon for solar cells. 21-Century Silicon seeks the ability to manufacture solar-grade polysilicon at a lower manufacturing cost and with reduced time for new plant setup
”We are pleased to take this first step towards vertical integration with this agreement,” said Leo Young, Solar EnerTech CEO, “and at the same time, to secure a polysilicon supply source at a time when demand and prices remain high.”
“We are excited to provide Solar EnerTech with our high-quality polysilicon to help meet the rising energy demands in the world today,” said Peter Mei, 21st-Century Silicon CEO. “The synergy between our management teams has been very strong and we look forward to strengthening our relationship going forward.”
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