OSA-Direct
Friday, 21 Sep 2018

Greatcell Solar agrees to sell 50 percent of material production assets to management

The deal anticipates a future 100 per cent transfer of the production assets upon the completion of a set of cash payments totalling AU$1 million by 30 September 2019 and additional payments for FY2020 and FY2021 based on future earnings


27 Aug 2018 | Editor

Greatcell Solar (GSL) has announced an update on matters relating to its current financial position. Today, GSL has agreed to sell 50 per cent of its materials production assets to Dr Yanek Hebting, the current GSL production manager who has served in that role for over ten years.

The deal anticipates a future 100 per cent transfer of the production assets upon the completion of a set of cash payments totalling AU$1 million by 30 September 2019 and additional payments for FY2020 and FY2021 based on future earnings.

The agreed payment schedule is:

  • AU$300,000 (27/8/18)
  • AU$200,000 (30/9/18)
  • AU$500,000 (30/9/19)
  • 1/3 EBITDA FY2020 (30/9/20)
  • 1/3 EBITDA FY2021 (30/9/21)

The board considers the forecast of future EBITDA as highly speculative and that it has insufficient information on which to make a reliable estimate. However, Greatcell Solar has based its sale price on an estimate that EBITDA for FY2020 will be AU$150,000 and FY2021 AU$200,000. This provides an estimate of total consideration of AU$1.117 million.

The basic terms of the agreement have been signed off and a non-refundable, 30 per cent deposit lodged with GSL. The long form agreements will be completed in the next 4 weeks and will include a services agreement, supply agreement and IP agreement. Importantly, all existing, affected staff are expected to retain their positions and entitlements, and will be transferred to the purchasing entity as part of the transaction.

The name of the newly formed production entity will retain the Greatcell Solar brand. Greatcell Solar is a leading supplier of high quality specialty chemicals to the global 3rd generation PV sector. The materials production business will continue to co-locate with other GSL businesses at Queanbeyan.

The Company remains positive in relation to its anticipated refinancing and will keep stakeholders informed on a fortnightly basis. We thank the shareholders for their patience and understanding during this challenging period.

"We are very pleased with this outcome. It will free up cash to meet more immediate financial obligations while retaining a preferred supply and use arrangement for critical materials inputs as we focus relentlessly on meeting our commercialisation objectives. While the transaction is arm’s length, we intend to remain close and exploit existing synergies and shared services arrangements, in particular."


Richard Caldwell, Managing Director, Greatcell Solar

"This venture is a win-win for both parties. The newly formed production company looks forward to working alongside GSL in its commercialisation strategy whilst expanding its own production horizons and capability."


Dr Yanek Hebting,

www.greatcellsolar.com   


About Greatcell Solar

Greatcell Solar is a global leader in the development and commercialisation of Perovskite Solar Cell (PSC) technology – 3rd Generation photovoltaic technology that can be applied to glass, metal, polymers or cement. Greatcell Solar manufactures and supplies high performance materials and is focused on the successful commercialisation of PSC photovoltaics. It is a publicly listed company: Australian Securities Exchange ASX (GSL) and German Open Market (D5I).

Source: Greatcell Solar


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