SunSi Energies... the only "pure play" public company in the world focused on TCS production!
SunSi Energies
U.S.-based SunSi is positioned to leverage one of the fastest growing trends and markets in the world today – the widespread deployment of clean, renewable, solar energy. As part of our plan to obtain market share leadership in this segment, SunSi Energies' objective is to acquire, develop and operate a portfolio of high quality Trichlorosilane (TCS) production facilities and distribution rights. Key determining characteristics of the prospective entities in this portfolio include strategic location, scalability, and production expansion potential.
Relatively unknown outside of the renewable energy space, TCS is essential to the solar industry. In fact, TCS is the main feedstock of the solar industry, used in the production of polysilicon, which in turn is used in the production of solar photovoltaic (PV) energy producing panels.
Corporate Structure and Recent Transactions
U.S.-based SunSi Energies owns 100% of a Hong Kong-based company, SunSi Energies Hong Kong Inc. (SunSi HK), through which SunSi Energies has acquired a Chinese TCS production facility and a TCS distribution company.
On December 9th, 2010, SunSi HK completed the acquisition of 90 % of Zibo Baokai Commerce and Trade Co. ("Baokai"), a distribution company. With this acquisition, SunSi gained exclusive rights to distribute 25,000 MT (metric tons) of TCS produced by the Zibo Baoyun Chemical Plant ("ZBC") located in Zibo China for both the local Chinese and the international markets. Additionally, this acquisition enabled SunSi to record meaningful revenue for the quarter ended February 28, 2011, and create a foothold in the Chinese TCS market.
On March 18th 2011, SunSi HK completed the acquisition of 60% of Wendeng He Xie Silicon Co. Ltd ("Wendeng") located in Weihai City. It should be noted that the entire Wendeng management team and staff were retained. Under the terms of this agreement, SunSi acquired a 60% equity interest in Wendeng, and SunSi paid the sole shareholder of Wendeng $455,000 and issued 1,349,628 redeemable common shares of SunSi. As part of the transaction, an existing shareholder of SunSi contributed 1,574,566 shares of SunSi common stock to the Wendeng shareholder.
Illustrating a vote of confidence in SunSi management, the Wendeng shareholder elected to waive his right to redeem 1,349,628 shares for approximately $2.7 million and instead chose to retain those shares. As a result, by the middle of June 2011, SunSi completed all of its acquisition payment requirements due to the Wendeng shareholder.
Although Wendeng's current capacity is approximately 22,000 MT, the facility's capacity will be greatly enhanced in the coming months. SunSi is currently undertaking a facility expansion which will increase capacity by almost 50% to 30,000 MT, by the end of July 2011. A second capacity expansion at the Wendeng facility will commence in July 2011. The total expansion, which will increase Wendeng's capacity to 75,000 MT, is expected to be completed in early 2012.
The existing Wendeng shareholder Wendeng has agreed to contribute to this planned expansion on a pro-rata basis in order to maintain its equity interest of 40%. Additionally, the current Wendeng executive management team will provide technical expertise for the construction, training and operation of the facility and its expansion.
SunSi Energies management is engaged in the evaluation of additional prospective acquisition opportunities in China as it foresees a growth, both in geographic terms and TCS demand. Our objective is to increase capacity through the acquisition of TCS facilities and through expansion in order to reach our l TCS production capacity goal of over 140,000 MT/year within the next three years.
A number of renewable and solar energy market research firms have identified North America and Europe as high potential end-user markets for PV panels, and thus TCS. Interestingly, while European countries such as Germany and Spain, have led the demand for solar PV in recent years, it appears that the U.S. will experience significant growth in the deployment of renewable energy and solar energy offerings in the coming years. While this trend begins to take shape, SunSi expects to maintain its status as a key supplier to the emerging Chinese and Asian polysilicon and solar energy markets.
SunSi Energies Inc. is traded on the NASDAQ OTC Bulletin Board under the ticker "SSIE".
SunSi Energies... the only "pure play" public company in the world
focused on TCS production!
