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Solar Integrated Announces Founder Sale; $3.3 Million Paid To Company
To Retire Guarantee Of Receivable
London, UK, and Los Angeles, California, May 11, 2007 – Solar Integrated Technologies, Inc. (AIM:SIT.LN), a leading provider of building integrated photovoltaic (BIPV) roofing systems, announced today the sale by Bruce M. Khouri, a founder and non-executive director of the Company, of 5,000,000 common shares of Solar Integrated at £1.30 per share for aggregate gross proceeds of £6.5 million (approximately U.S. $12.8 million). The £1.30 per share sale price represents a 4.5% premium over the trailing 30 day average closing price. Mr. Khouri continues to hold 7,725,399 shares, representing 10.9% of Solar Integrated’s outstanding shares, and continues to serve as a non-executive director and advisor to management. As part of the sale, Mr. Khouri has agreed to a lock-up or resale restriction for his remaining shares until January 1, 2008. As contemplated under the terms of a separation agreement between Mr. Khouri and the Company in December 2006, Mr. Khouri will use the first $3.3 million of the sales proceeds to repay amounts owed to Solar Integrated by SCR Group, Inc., a company co-owned by Mr. Khouri. The disposal took place on May 11, 2007 which was the effective date of notification to Solar Integrated.
“With the 2006 financial results released, the timing was right for me to satisfy this $3.3 million obligation and get that capital into the Company, as well as to diversify my personal holdings,” stated Bruce M. Khouri. “It is my intent to continue as a trusted advisor to management and remain a significant shareholder of the Company. I am proud of the Solar Integrated team and excited by the accomplishments over the past 10 months. I am particularly encouraged with the progress made to improve the Company’s gross margin performance.”
“Bruce’s actions today underline the measure of his integrity and continued commitment to Solar Integrated,” commented R. Randall MacEwen, President & CEO of Solar Integrated. “This $3.3 million is our lowest cost of capital and will help support our working capital requirements during an important phase of our growth.
In 2006, as a prudent accounting matter, Solar Integrated recorded an impairment of its $3.3 million receivable from SCR.
The placing of the shares sold by Mr. Khouri to a small group of institutional investors was led by Mirabaud Securities Limited.
About Solar Integrated:
Solar Integrated Technologies, Inc. (SIT: AIM.LN) is a Los Angeles-based company that manufactures, designs and installs building integrated photovoltaic (BIPV) roofing systems for non-residential, low-slope rooftops. We are a global leader in the development of an innovative and proprietary BIPV roofing system that combines flexible thin-film solar modules with a single-ply roofing membrane for large-scale commercial and industrial applications. Our BIPV roofing system enables our customers to transform a traditional rooftop into a value-generating asset. Our customers include Coca-Cola Enterprises, Frito-Lay, Honeywell, ProLogis, San Diego Unified School District, Toyota, U.S. Air Force, U.S. GSA, U.S. Navy and Wal-Mart.
Forward-Looking Statement:
This release includes forward-looking statements which are based on certain assumptions and reflect management’s current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: the availability and cost of capital; uncertainty as to whether our strategies, partnerships and business plans will yield the expected benefits; general global economic conditions; general industry and market conditions and growth rates; increasing competition; the ability to identify, develop and achieve commercial success for new products, services and technologies; changes in technology; changes in laws and regulations, including government incentive programs; intellectual property rights; our ability to secure and maintain strategic relationships, including key supply relationships; and the availability of, and our ability to retain, key personnel. Additional factors are discussed in our public disclosure materials from time to time. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Investor Contacts:
Solar Integrated Technologies, Inc. Solar Integrated Technologies, Inc.
R. Randall MacEwen John M. Palumbo
President & Chief Executive Officer Chief Financial Officer
Los Angeles, California, USA Los Angeles, California, USA
+1.562.299.0136 +1.562.299.0121
Media Contacts:
Gavin Anderson & Company
Ken Cronin or Deborah Walter
London, UK
+44.20.7554.1400
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