Today before the opening bell, Tegal Corp. announced that it has formed, together with se2quel Partners LLC, a new company focused on developing and operating large scale photovoltaic (PV)-based solar utilities in the United States, Latin America, the Middle East and Africa.
se2quel Partners, under the leadership of Ferdinand Seemann, a solar technology expert and former Independent Director of Tegal, has developed a unique manner of developing, building and operating PV-based utilities on the scale of 1,000+ megawatts (1GW) to be cost competitive with conventional energy sources. Currently, the company has more than 10 active projects with major partners in various stages of analyzing and developing solar utilities in six different countries.
Expected to grow 20-36% annually over the next four years, the global PV market is expanding rapidly. Although the utility-scale segment accounted for less than 13% of the total PV market in the USA in 2009, it is the fastest growth segment of the PV industry and is expected to exceed 35% of the total by 2014.
sequel Power, a newly-formed Delaware company, will take over the existing solar projects, along with the technology, know-how and related infrastructure of se2quel Partners. Tegal Corp. has invested $2 million in cash for a majority voting interest and an approximate 25% economic stake in the new company. In addition, Tegal has granted warrants to purchase a total of 928,884 shares of Tegal common stock at an exercise price of $0.63 per share to se2quel Partners and se2quel Management GmbH, which represents approximately 11% of Tegal’s total shares outstanding. Thomas Mika, President & CEO of Tegal, will serve as the company’s Executive Chairman.
“With this initial investment by Tegal Corporation, we continue our transition from our current position as a third-tier supplier of semiconductor capital equipment to pursuing a leading role in green energy,” stated Thomas Mika, President & CEO of Tegal Corporation. “After extensive due diligence, we believe the projects in PV-based solar energy that sequel Power is initiating can make a true difference to the future of many countries looking to reduce their dependence on fossil fuels. The sequel Power model for large scale PV-based solar projects is unique in the industry and has won significant acclaim from governments, industrial companies and industry advocates for its innovation and prospect for success. By forming this new company with this talented team, we can capitalize on this opportunity in what we believe to be the most effective way possible for the benefit of our stockholders, which utilizes Tegal’s capital equipment know-how, a portion of our cash and even potentially the tax benefits of our NOL’s. We look forward to supporting the activities of sequel Power through our direct efforts and through related operations and investments we may make in the future.”
“We enthusiastically welcome Tegal Corporation and Tom Mika to our team,” comented Ferdinand Seemann, President and CEO of sequel Power LLC. “Over the last couple years, we have demonstrated the potential of our unique model for large scale solar projects, while forming alliances with leaders in our field. We believe that sequel Power is in a very promising position to enter into three to four major projects in the United States and Latin America within the next year. We look forward to benefitting from Tom’s active involvement in our development projects and in utilizing his extensive expertise in evaluating, structuring and financing complex business arrangements in multiple countries and cultures.”