Kerry Pianoforte12.07.11
Dyesol has terminated its May 3, 2011 agreement with SpringTree Special Opportunities Fund, LP. In addition, it has entered into an investment agreement with Bergen Global Opportunity Fund, LP. Bergen is a fund managed by Bergen Asset Management, LLC, a New York-based asset management firm whose management is also part of SpringTree’s management.
The new agreement with Bergen is similar to the prior SpringTree agreement, however, key features of the agreement have been improved for the benefit of Dyesol’s shareholders.
Under the agreement:
• Dyesol has preserved its existing termination rights.
• Bergen has agreed to terms that are more beneficial for Dyesol than the terms of the SpringTree agreement, which terms amongst other things, reduce the dilution for Dyesol’s shareholders.
• Bergen has agreed to limitations on share sales of the shares held by it.
Under the agreement, Bergen will invest a minimum of $400,000 (and upon agreement, up to $600,000) in Dyesol’s shares monthly. In addition, Bergen will also invest $800,000 in the form of an interest-free convertible security, which will have a three-year maturity and cannot be converted into Dyesol’s shares until a date that is three months after the date of execution of the agreement. The total invested by Bergen at the first settlement under the agreement will, therefore, be $1.2 million.
The additional investment by Bergen provides a validation of Dyesol’s investment strategy by a US institutional investor.
The new agreement with Bergen is similar to the prior SpringTree agreement, however, key features of the agreement have been improved for the benefit of Dyesol’s shareholders.
Under the agreement:
• Dyesol has preserved its existing termination rights.
• Bergen has agreed to terms that are more beneficial for Dyesol than the terms of the SpringTree agreement, which terms amongst other things, reduce the dilution for Dyesol’s shareholders.
• Bergen has agreed to limitations on share sales of the shares held by it.
Under the agreement, Bergen will invest a minimum of $400,000 (and upon agreement, up to $600,000) in Dyesol’s shares monthly. In addition, Bergen will also invest $800,000 in the form of an interest-free convertible security, which will have a three-year maturity and cannot be converted into Dyesol’s shares until a date that is three months after the date of execution of the agreement. The total invested by Bergen at the first settlement under the agreement will, therefore, be $1.2 million.
The additional investment by Bergen provides a validation of Dyesol’s investment strategy by a US institutional investor.