28 February 2013 – Tasnee has invested AUD $4 million in Dyesol Limited by way of a 15 month redeemable loan note, convertible into Dyesol shares at 16.6 cents per share, with a 0% coupon (as is required by Saudi Arabian law).
During an initial 6 month exclusivity period, Tasnee and Dyesol will discuss a number of partnership and investment possibilities, focusing on R&D collaboration, large-scale production share, potential demonstration projects in the Middle East and, importantly, further investment up to a total of A$20 million.
Tasnee's subsidiary Cristal has been working with Dyesol UK since 2009 to develop nano-titania for use in Dyesol's major steel project with Tata Steel Europe in the UK. Nano-titania is a semi-conductor and a key material in manufacture of DSC photovoltaic solar cells.
Under the Subscription Agreement, Tasnee will have the right to invest up to a total of A$20 million in Dyesol during the exclusivity period at 18 cents per share. To the extent that investment is beyond 20% ownership in Dyesol and/or exceeds capacity under ASX Listing Rule 7.1, the strategic investment will require shareholder approval as required by the Corporations Act and the ASX Listing Rules, respectively.
As promised to existing Dyesol shareholders at the 2012 AGM, the Company will conduct a Share Purchase Plan (SPP) at 16.6 cents per share to raise a further A$2 million to participate in investment alongside Tasnee. In addition, Dyesol has investigated other non-dilutionary funding options in recent months, including Government clean energy funding programs, which will mean it is confident of fulfilling all its funding obligations in major projects during 2013 and beyond.
Dr. Talal Bin Ali Al-Shair, Cristal’s Chairman and CEO, commented:
"We are so passionate about titanium – from mining to pigments to specialty chemicals and beyond. Titanium is at the heart of all we do, and this strategic investment in Dyesol marks our commitment to pioneering innovation, constant product and process improvement, and our leading role in contributing to creating a brighter and cleaner world."
Mr Richard Caldwell, Dyesol Executive Chairman welcomed the investment by Tasnee:
"Tasnee has demonstrated great commitment to the successful commercialisation of our Dye Solar Cell technology, both through participation in long-term R&D programmes and now through its expression of intent by investment in a convertible note. Tasnee has a very strong balance sheet and interest to diversify its activities into renewable energy. Dyesol looks forward to exploring mutually beneficial opportunities."