Looks like the rumors and speculation were true. Daystar has restructured their financing and is selling 2.5 million shares at $2/share. If I understand the release correctly, it looks like they may also be able to make future note payments with stock (at $2 share). The good news is that they're not going bankrupt right away. The bad news is that they're going to significantly dilute their share value. The stock was already up 20% today before the announcement, it traded flat for a few minutes after the announcement and then retreated to about 10% or so off of the high. I'm not sure how this is going to shake out but it looks like my bet at $2.50 might be ok...DayStar Restructures Senior Note and Obtains Commitments for Additional CapitalFriday January 19, 3:02 pm ETHALFMOON, N.Y., Jan. 19 /PRNewswire-FirstCall/ -- DayStar Technologies, Inc. (Nasdaq: DSTI - News), a developer and manufacturer of innovative CIGS Photovoltaic Foil(TM) products, today announced that it has successfully restructured its $15 million senior convertible note originally issued in May of 2006.DayStar has entered into an agreement with a new investor under which the original investor will transfer the debt, a Class B warrant and the associated rights of each to the new investor, who has agreed to certain modifications to these obligations. Under the terms of this agreement, the Company will make a payment to the original investor prior to the transfer in the form of cash and shares of the Company's common stock, which issuance will constitute payment in full for all currently due amounts of principal and interest. Additionally, the original investor will receive an additional Class A Warrant to purchase 317,394 shares of common stock when permitted by Nasdaq's rules.The new holder of the debt and the Company have agreed that principal and interest payments on the debt will resume with the first principal payment due on February 19, 2007. In addition, they have agreed to amend the terms of the debt to provide that, when permitted by Nasdaq's rules and subject to standard closing conditions, all principal and interest amounts due on the debt will convert into the Company's common stock at a price of $2.00 per share. Upon this conversion, the Class B Warrant and all the existing debt covenants will terminate.As part of this purchase, the Company has also entered into a Stock Purchase Agreement with another group of new investors under which the Company has agreed to sell 2,500,000 shares of common stock at a price of $2.00 per share when permitted by Nasdaq's rules and subject to standard closing conditions.DayStar has submitted a request to Nasdaq that the issuance of the new Series A Warrant, the conversion proposed for its debt and the new sale of stock all be permitted without the submission to a stockholder vote that would otherwise be required by Nasdaq's marketplace rules. In the event such exemptive relief is not obtained, DayStar intends to hold a meeting of its stockholders to approve these issuances as soon as practicable. http://biz.yahoo.com/prnews/070119/sff018.html?.v=78 .................
I'm not sure how this is going to shake out but it looks like my bet at $2.50 might be ok...just FYI, my GTC order to sell at $7 executed yesterday so I'm out.
I also sold DSTI--at 7.25. But I didn't get in anywhere near your cost basis. I made a very modest profit.I believe there will be a sell-off of solar energy stocks--they've just gotten ahead of themselves (especially FSLR, which is just north of the stratosphere). However, I will be keeping a watchful eye out for any bargains that come up. I would gladly buy FSLR & SPWR at more reasonable prices. And I would re-up for DSTI under $5/share.
...I also sold DSTI--at 7.25. But I didn't get in anywhere near your cost basis. I made a very modest profit....so far that's looking like a pretty good decision...http://tinyurl.com/222asq
What a time to propose to dilute your stock price with a new public offering. I'm thinking they're desperate. The developments in the corporate credit world make it much more likely that Daystar is now a good GTZ (gone to zero) candidate. I wish I'd shorted this one when I sold it but I wasn't so sure they were even going back down at that point.===============DayStar Announces Proposed Public Offering of Common StockMonday August 6, 8:33 am ETHALFMOON, N.Y., Aug. 6 /PRNewswire-FirstCall/ -- DayStar Technologies, Inc. (Nasdaq: DSTI - News), a developer and manufacturer of CIGS Photovoltaic products, today announced that it has filed a registration statement with the Securities and Exchange Commission relating to the proposed public offering of its shares of common stock. In connection with the offering, DayStar will grant the underwriters an option to purchase up to an additional fifteen percent of the number of shares sold in the offering to cover any over- allotments.Piper Jaffray & Co. is the sole book-runner of the proposed offering.http://biz.yahoo.com/prnews/070806/clm046.html?.v=97http://tinyurl.com/3aw9tj
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