11 January 2011

5N Plus converts $3m debenture to Sylarus into majority stake

5N Plus Inc of Montreal, Canada, a provider of high-purity metals, compounds and wafers for electronic applications, has agreed to convert the US$3m debenture provided on 21 June 2010 to Sylarus Technologies LLC of Saint George, UT, USA (which produces germanium substrates for manufacturing multi-junction compound semiconductor photovoltaic cells) into a 66.67% majority interest.

5N Plus has also agreed to provide additional funding of US$766,000 in the form of secured debt to enable the repayment of short-term debt contracted by Sylarus. In addition, 5N Plus intends to support Sylarus capital expenditures, working capital requirements and development expenses as needed.

Sylarus is a key customer of 5N Plus’ subsidiary Firebird Technologies of Trail, British Columbia, Canada (acquired in December 2009), which provides high-purity germanium feedstock and corresponding recycling services for germanium-containing residues. 5N Plus' Jean Bernier will act as general manager of Sylarus until further notice.

“They are one of the very few germanium substrate manufacturers qualified for space applications and are well positioned to take advantage of the anticipated growth in concentrator photovoltaics [CPV] for terrestrial applications,” says 5N Plus’ president & CEO Jacques L’Écuyer. “5N Plus is now one of the leading producers of germanium, with a full range of related products for the infrared optics, LED and photovoltaic markets, as a result of Firebird’s product portfolio and supply agreements with Teck Metals,” he claims.

“Although the acquisition of Sylarus is not expected to be immediately accretive, as Sylarus gradually ramps up production and completes its development work we expect that, within a 24 month period, it will have a positive impact on the earnings of the group,” L’Écuyer reckons.

Tags: 5N Plus Germanium substrates

Visit: www.5nplus.com

Visit: http://sylarus.com