Quantum Solar Power Secures Funding for Research and Development Activities and Establishes Science Advisory Board
VANCOUVER, May 30, 2012 /PRNewswire/ — Quantum Solar Power Corp. (“Quantum”) (OTCBB: QSPW) is pleased to announce that it has secured $475,000 in debt financing, permitting Quantum to fund continued research and development activities at Simon Fraser University (“SFU”), and that Dr. Edward Sargent has agreed to act as chairman of Quantum’s newly established science advisory board.
On May 23, 2012, Quantum closed escrow on an amended loan agreement dated May 22, 2012, with Foundation Freehold Ltd. (“Foundation”) for a loan in the principal amount of CDN $475,000 after Canadian Integrated Optics (BC) Ltd. (“CIO-BC”), a company that conducts research on behalf of Quantum, entered into an amendment to its research agreement with SFU permitting research and development of Quantum’s NGD(TM) Technology to proceed. The majority of the proceeds from the loan will be used to fund further research and development activities. The loan is to be advanced, according to the following schedule:
(i) CDN $175,000 on April 25, 2012 (which has been advanced); (ii) CDN $18,000 on May 23, 2012 (which has been advanced); (iii) CDN $150,000 to be advanced on June 25, 2012; and (iv) CDN $132,000 to be advanced on July 23, 2012.
Although the execution of the loan documents and the initial advancement occurred on April 23, 2012, the loan documents and proceeds were required to be held in escrow pending CIO-BC reaching an agreement with SFU to permit research and development activities to proceed. The loan is payable on April 23, 2015, bears 9% annual interest and is secured by a guarantee of the Quantum’s wholly owned subsidiary, 0935493 B.C. Ltd (“SubCo”) charging, in favour of Foundation, one of Quantum’s PVD 75 Deposition tools and Quantum’s Nova NanoSEM 430 Ultra-high resolution FESEM microscope. At any time, Foundation may elect to receive shares of Quantum’s common stock in exchange for any portion of loan or interest outstanding on the basis of one share for each USD $0.02 of indebtedness converted.
On March 22, 2012, CIO-BC entered into its sixth amendment to its research agreement with SFU and issued a promissory note to SFU in the amount of CDN $452,749 to SFU in respect of previous research activities conducted on behalf of Quantum. To secure payment under the amended research agreement, Quantum and SubCo provided a guarantee to SFU of the promissory note and charged in favour of SFU, all of Quantum’s beneficial interest in three Kurt J. Lesker PVD 75 Deposition tools.
On March 23, 2012, Quantum’s Board of Directors approved the formation of a science advisory board and appointed Dr. Sargent as its first member and chairman. Dr. Sargent will be responsible for recruiting and appointing additional members. Dr. Sargent holds the Canada Research Chair in Nanotechnology at the University of Toronto. He is Fellow of the American Association for the Advancement of Science as well as a Fellow of the Institute of Electrical and Electronics Engineers. He is the Chief Technology Officer of InVisage Technologies, an image sensor company, and co-founder of Xagenic, a point-of-care molecular diagnostics company.
Daryl Ehrmantraut, Chief Operating Officer of Quantum, said, “Dr. Sargent is an expert in novel photovoltaics. The addition of his expertise and insight is tremendously valuable and will further improve our rate of progress. While our early-stage development involves keeping a tight lid on the details of our photovoltaic technology, our continued success involves attracting a growing contingent of industry and academia experts to vet our technology and advise us on our development plan. To this end, Dr. Sargent, along with management, has been exploring their respective networks to identify and attract further members to the science advisory board.”
In consideration of his services, Quantum granted 250,000 non-qualified options to Dr. Sargent, entitling him to purchase shares of Quantum’s common stock at a price of USD $0.165 per share, exercisable until March 1, 2014. The science advisory board’s duties include preparing objective evaluations of Quantum’s progress in science and technology, acting as ambassadors for Quantum and its technology, and evaluating new technologies and intellectual property.
Complete details of the above transactions are contained in Quantum’s Current Report on Form 8-K filed with the SEC on May 29, 2012.
About Quantum Solar Power Corp.
Quantum Solar Power Corp. is developing a “Next Generation Device” (NGD(TM)) photovoltaic technology. Quantum’s NGD(TM) is a patent pending, laboratory model that utilizes a new approach to solar power conversion with the potential to remove the necessity of utilizing expensive silicon semiconductor-based technologies. Management believes that Quantum’s NGD(TM) technology has the potential to match the efficiency of crystalline silicon PV at the cost of thin film PV. The anticipated NGD(TM) technology is free of any rare element dependencies found in other current solar technologies. Management believes that Quantum has the potential to create solar cells (through manufacturing partnerships) at significantly less cost per watt than current technologies. Quantum Solar Power has offices in the U.S. and Canada and can be found on the web at: www.quantumsp.com
Forward-Looking Statements This news release contains forward-looking statements regarding future events and Quantum’s future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”) and constitute “forward looking information” within the meaning of U.S. securities laws. These statements include statements about Quantum’s planned technological development plan and are based on material factors and assumptions including Quantum’s management’s current expectations, estimates, forecasts, and projections about the industry in which Quantum operates and the beliefs and assumptions of Quantum’s management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “may,” variations of such words, and similar expressions, are intended to identify such forward-looking statements. In addition, any statements that refer to projections of Quantum’s future financial performance, Quantum’s anticipated growth and potentials in its business and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including the risk that Quantum’s technological development plan may not be successful, and those risks identified in Quantum’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2012. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Quantum undertakes no obligation to revise or update any forward-looking statements for any reason.
Contact: Daryl Ehrmantraut
Chief Operating Officer
Quantum Solar Power Corp.
+1 (604) 681-6311
SOURCE Quantum Solar Power Corp.