Date: Oct 28, 2014 Source: Business Wire (
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BEDFORD, Mass.--(BUSINESS WIRE)--Spire Corporation ("Spire" or the "Company") (OTCQB: SPIR), a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic modules and optoelectronics thin film services, today announced that, in order to increase working capital, eliminate significant unpaid rent obligations, and substantially reduce future rent obligations, as described in more detail below, it has completed the sale of certain non-core assets for aggregate net consideration of approximately $2.4 million to Roger G. Little, Chairman of the Board of Directors of the Company, and SPI-Trust, a trust of which Mr. Little is the sole trustee and principal beneficiary.
"The solar equipment growth that we have experienced in the past several quarters represents substantially more than a doubling of our 2013 work load and our need for meaningful working capital is key to our ability to further grow the business in 2015 and beyond."
Spire entered into a series of transactions including the sale of its subordinated convertible promissory note from N2 Biomedical, LLC ($2.4 million principal amount), the transfer of its equity interest in N2 Biomedical, LLC (valued at approximately $2.1 million) and an amendment to its lease agreement with SPI-Trust resulting in forgiveness of past-due rent of approximately $1.9 million, a rent free period from November 1, 2014 through July 31, 2015 valued at approximately $1.3 million and $2.3 million in additional savings through the end of the lease term of November, 2017. The Company also received $1.5 million in cash and forgiveness of $200,000 of compensation owed by the Company to Mr. Little. In addition, Mr. Little was issued a five-year warrant to purchase 1.0 million shares of common stock of the Company for an exercise price per share of $0.276. Over the term of the transactions described herein, Spire expects to achieve an approximate $5 million cash benefit, all of which, if achieved, can be used to support ongoing operations and grow the business.
Rodger W. LaFavre, President and CEO of Spire Corporation, stated, "Spire is pleased to be able to conclude these transactions, involving the sale of certain non-core assets, in order to increase working capital, eliminate significant unpaid rent obligations and substantially reduce future rent obligations. Most importantly this provides the Company immediate and future working capital to support our growing solar business."
Mr. LaFavre added, "The solar equipment growth that we have experienced in the past several quarters represents substantially more than a doubling of our 2013 work load and our need for meaningful working capital is key to our ability to further grow the business in 2015 and beyond."
About Spire Corporation
Spire Corporation is a global solar company providing technology, equipment and turn-key production lines to manufacture photovoltaic modules and providing optoelectronics thin film services. For further details on the Company, its products and for contact information for the worldwide representatives, please visit www.spirecorp.com.