Press release from CNW Group
5N PLUS CONVERTS DEBENTURE TO SYLARUS TECHNOLOGIES, LLC ON OWNERSHIP AND MAJORITY INTEREST
Monday, January 10, 2011
MONTREAL, Jan. 10 /CNW Telbec/ - 5N Plus Inc. (TSX:VNP) a leading producer and provider of high-purity metals, compounds and wafers for electronic applications, announced today that it has agreed to convert the US$3 million debenture provided to Sylarus Technologies, LLC of Saint George, Utah on June 21, 2010 into a 66.67% majority interest. 5N Plus has also agreed to provide additional funding of US$766,000 in the form of secured debt to enable the repayment of short term debt contracted by Sylarus. In addition, 5N Plus intends to support Sylarus capital expenditures, working capital requirements and development expenses as needed. Sylarus is a leading producer of germanium substrates for solar cells and an important customer of 5N Plus' subsidiary Firebird Technologies that provides high-purity germanium feedstock and corresponding recycling services for various germanium containing residues. 5N Plus' Jean Bernier will act as General Manager of Sylarus until further notice.
5N Plus President and Chief Executive Officer Jacques L'Écuyer said, "We are excited by the opportunities that Sylarus brings to the group through their unique product offering. They are one of the very few germanium substrate manufacturers qualified for space applications and are well positioned to take advantage of the anticipated growth in concentrator photovoltaics for terrestrial applications. 5N Plus is now one of the leading producers of germanium with a full range of related products for the infrared optics, LED and photovoltaic markets as a result of Firebird's product portfolio and supply agreements with Teck Metals. Although the acquisition of Sylarus is not expected to be immediately accretive, as Sylarus gradually ramps up production and completes its development work, we expect that within a 24 month-period it will have a positive impact on the earnings of the group. We welcome the Sylarus employees into the 5N Plus group and assure them of our support as they strive to bring Sylarus to the next level."
About 5N Plus Inc.
5N Plus Inc. draws its name from the purity of its products, 99.999% and higher (five nines or 5N). The head office is located in Montreal, Québec, and 5N Plus owns three material subsidiaries which are 5N PV GmbH (Eisenhüttenstadt, Germany) Firebird Technologies Inc. (Trail, BC) and 5N Plus Corp. (Deforest, Wisconsin). 5N Plus is a fully integrated producer and closed-loop recycler of highly purified metals, compounds and wafers. We use a range of proprietary and proven technologies to produce metals such as tellurium, cadmium, germanium, indium, antimony, selenium and related compounds such as cadmium telluride, cadmium sulphide and indium antimonide. Our products are critical precursors that customers use in a number of electronic applications, including the rapidly-expanding solar (thin-film photovoltaic) market, for which we are a major supplier of CdTe, as well as the radiation detector and infrared markets.
About Sylarus Technologies, LLC
Located in Saint George, Utah, Sylarus Technologies, LLC supplies low cost, premium quality germanium wafers to the manufacturers of multi-junction, compound semiconductor photovoltaics. These high-efficiency solar cells are used for both space and terrestrial solar power generation.
Notice Regarding Forward-Looking Statements
Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties, and actual results may be different. Forward-looking statements are based on the best estimate available to 5N Plus at the time and involve known and unknown risks, uncertainties or other factors that may cause 5N Plus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
For further information:
President and Chief Executive Officer
5N Plus Inc.