SunSi Energies has finalized its majority acquisition, with 60% equity interest, in He Xie Silicon (Wendeng). The trichlorosilane (TCS) facility in Weihai City, China also has a 40% minority shareholder who will maintain their equity interest share in the company. SunSi notes that Wendeng’s entire management team and all of its employees will remain with the company.
The signed agreement will see SunSi pay the minority, and sole shareholder, of Wendeng around US$3.15 million in two cash payments. The US$455,000 and US$2.7 million payments will be completed in a three month and six month period, respectively. The total payment is guaranteed with the issuance of 1,349,628 common share of SunSi, which will be required to be re-purchased by the company in six months time. Furthermore, the minority shareholder of Wendeng will receive an additional 1,574,566 shares of SunSi common stock from an existing shareholder of SunSi.
David Natan, SunSi's chief executive officer stated, “After many months of work, we are extremely pleased to have completed the acquisition of a 60% interest in Wendeng, one of the premier TCS facilities in China. Currently, Wendeng is operating at full capacity and generating excellent profitability. Based on the current and anticipated future worldwide demand for TCS, we are very comfortable undertaking the expansion of the Wendeng facility to 75,000MT. On a consolidated basis we are now a profitable company going forward. As a result, we expect to file for an AMEX listing within the next couple of months. We remain committed to generating value for shareholders.”