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DayStar Technologies, Inc.(DSTI), the early developer of CIGS solar cells, about which The Energy Blog has reported on, has raised a $5mm bridge loan from a group of six investors, Millennium Partners being the largest funder. The money will help carry the company while it raises significantly more capital to be used for the building of a production line in Malta.

According the Albany Times Union,the Halfmoon, NY-based solar cell manufacturer is seeking as much as $30 million for a new manufacturing facility in Malta but has said it needs funding just to keep operating past the first quarter of this year.

A new manufacturing facility is key to DayStar's business plan. The company lost nearly $15 million through the first nine months of 2006 and needs increased manufacturing capability to boost sales and turn a profit.

Founder John Tuttle, who brought the company from California to Saratoga County in 2004, was replaced as CEO by Stephan DeLuca in November. Randolph A. Graves, Jr., a member of DayStar’s board of directors since October 2003, was elected by the board of directors to serve as Chairman of the Board, replacing Tuttle, who will remain a member of the board until the next annual meeting. Tuttle resigned as Chief Development Officer of DayStar Technologies, Inc. to pursue other opportunities. The company is operating without a chief financial officer.

Thanks to Rob Day of Cleantech Investing for the tip

This financing and changes in corporate structure confirm my suspicions that the company was suffering financial problems. It would be a shame to see this innovative company not be able to succeed.

DSTI 1-yr chart:

Source: DayStar Tech Obtains Bridge Financing