18 March 2011

Sunovia modifies agreements with co-founders and changes fiscal year date

Sunovia Energy Technologies Inc of Sarasota, FL, USA, which is commercializing a concentrated photovoltaic (CPV) tracking system (for III-V or II-VI solar cells) as well as LED lighting products, has changed its fiscal year from 31 July to 31 December (effective as of end-December 2010). The change was approved by the firm’s board of directors on 9 February.

“This change will simplify our financial and public reporting,” says CEO Art Buckland. “We are improving our processes and procedures at all levels of the company, in all aspects of the business,” he adds. “This is just one example of an area where a simple change will bring the company forward in that effort.”

The firm will file an Annual Report on Form 10-K for the fiscal year to end-December 2010 and will commence quarterly reporting in the first quarter of this year.

Sunovia has also terminated the Stock Option Agreement dated 20 December 2005 with Craca Properties LLC, an affiliated company of former CEO & co-founder Carl L. Smith III. As disclosed in prior company reports, the option provided Craca the right to acquire 500,000,000 shares of common stock at an exercise price of $0.10 per share.

“Termination of the option allows the company to provide incentives to employees through stock options in a more meaningful way,” Buckland says. “This is an important step to motivating our employees to work hard through the challenges ahead. It is equally important to our effort to position the company for additional investment,” he adds. “When it was granted, this option was primarily intended to be a defensive weapon if an unwanted takeover occurred. That is not a significant concern at this stage of the company’s progress.”

Also agreed was the termination of the Royalty Agreement (dated 20 December) between Sparx Inc (an entity controlled by Smith) and Sologic Inc (a predecessor in interest to the company). It was further agreed that Smith would return to Sunovia a portion of the shares committed by him in 2008 to be cancelled to reduce dilution from the issuance of stock to EPIR Technologies Inc of Bolingbrook, IL, USA (which develops infrared sensor, biosensor and solar photovoltaic products). As previously disclosed, Smith committed to cancel 4,495,000 shares at that time. A portion of the shares that would otherwise be returned to the company have been issued in settlement of certain consulting fees. Sunovia anticipates that about 3 million shares will be cancelled as a result.

With these agreements, Sunovia and Smith have fulfilled or cancelled the contractual obligations between them and their related entities.

Sunovia and two of its officers, chief financial officer Matthew A. Veal and chief technology officer Robert A. Fugerer, have mutually agreed to terminate the employment contracts between them. Both Veal and Fugerer remain employed in those capacities.

“We are moving away from employment contracts for employees other than our CEO,” says Tom Siegfried, a shareholder and former construction industry executive who was elected to Sunovia’s board independent director at the end of January, when Smith and Fugerer resigned from the board. “The leadership of these officers in voluntarily cancelling their employment contracts is commendable and a sign of commitment to the company and its long-term goals.”

Tags: Sunovia CPV CdTe solar cells LEDs

Visit: www.sunoviaenergy.com

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