Quantum Fuel Systems Technologies Worldwide and its subsidiary, Quantum Solar Energy has entered into a non-binding letter of intent with New Energy Systems, LLS (NES). New Energy Systems, LLS is responsible in putting forward the terms by which the company will invest $20 million in Quantum Solar. This investment will be used by Quantum Solar to produce a solar voltaic module manufacturing facility in Irvine, California. This module is expected to possess an annual capacity of 45 MW.
The manufacturing aid in the production of this module will be obtained from Asola Advanced and Automotive Solar Systems GmbH, a subsidiary unit of Quantum and Quantum Solar along with the much improved technologies of crystalline silicon. Continuous production is expected to start in the spring of the year 2010 and a part of this production output will be sold to NES by Quantum Solar as a part of its initiatives in establishing its California solar energy business. Modules will also be supplied to Schneider Power as a part of the company’s solar energy generation projects.
According to the terms of the Letter of Intent, $20 million will be used by NES in exchange for stocks belonging to Series A, which will be changed into equal shares of the common stock of Quantum Solar. An aggregate dividend equal to 2.5% of the investment amount will be received by NES for at least seven years or until a total investment equal to $6 million is received by NES. Quantum will own 51% of Quantum Solar, Asola will own 15% and NES will own 34% of Quantum Solar when the entire transaction is closed. Following this, both NES and Quantum will possess the right to select and appoint two directors as a part of the board of directors of Quantum Solar. The closing will take place based on the negotiation and execution of agreements carried out by NES.
Alan P. Niedzwiecki, the President and CEO of Quantum, remarked that the investment carried out by NES has enabled Quantum to launch its solar electric generation products, which will be used in projects established by Schneider Power and NES. Niedzwiecki further stated that investors and customers of both state-owned and private- owned solar projects are demanding for USA made solar modules that possess supreme quality, and that also ensure the production of clean electricity on a long term basis.