This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Day4 Energy Reports Sale Of Day4 EcoTec

BURNABY, BC, April 2, 2012 /PRNewswire/ - Day4 Energy Inc. (TSX: DFE), a leading global provider of solar photovoltaic (PV) products and solutions, today reported that it has completed its previously announced sale of its subsidiary Day4 ecoTec GmbH.  The sale was completed on March 31, 2012 to a company controlled by a director of Day4.

Under the terms of the transaction the acquirer will acquire 100% of issued and outstanding shares of Day4 ecoTec from Day4 for a total consideration of $100 and will cause Day4 ecoTec to issue a secured debenture to Day4 in the principal amount of €4.5 million, which represents net amounts advanced by Day4 to Day4 ecoTec and the two parties have agreed is the amount owingon the closing date.  The secured debenture carries an interest coupon equal to the main refinancing operation (fixed rate) of the European Central Bank plus 5% per annum, to a maximum of 7.5% per annum for the first five years and 8% per annum thereafter.  The debenture will be secured against the assets of Day4 ecoTec and the security will rank behind any existing bank security of Day4 ecoTec. The principal portion of the debenture is to be paid to Day4 by quarterly instalments in the amount of a specified percentage of Day4 ecoTec's cash receipts in a quarter, to a maximum of €200,000 per quarter. Interest will be payable quarterly in arrears.  The secured debenture will mature on March 31, 2022.

The sale is expected to significantly reduce Day4's monthly operating costs as well as its long and short term debt.  As a result of the transaction, Day4's staff will be reduced from 132 employees to 50 employees.

In connection with the sale, certain long-term relationship agreements and non-competition agreements were terminated which agreements were initially entered into at the time when Day4 acquired Day4 ecoTec.  The long term relationship agreement previously included restrictions on the manner and timing of any dispositions of Day4 shares by the previous owners of Day4 ecoTec and provided that Day4 would appoint two nominees of the previous owner to the board of directors of Day4.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,189.63 -99.00 -0.54%
S&P 500 2,106.66 -10.73 -0.51%
NASDAQ 4,977.73 -30.3660 -0.61%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs