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.
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.
Certain matters described in this press release including those relating to the expected benefits of the transactions described herein, including, without limitation, expected rent savings and expected aggregate cash benefits, and Spire’s prospects for growth constitute forward-looking statements under the federal securities laws. The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company’s strategic direction and the effect of such plans on the Company’s financial results. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, Spire’s ability to achieve the expected benefits of the transactions described herein, the risk of dependence on market growth, competition and dependence on government agencies and other third parties for funding contract research and services, as well as other factors described in the Company's Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Forward-looking statements contained in the press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The Company undertakes no obligation and expressly disclaims any duty to update such statements.