To Our Valued Shareholders,
As we begin the second calendar quarter 2010, we are pleased to share with you progress occurring in the development of our new CIGS manufacturing technologies, and to also announce progress securing additional financing to help drive the commercialization of XsunXs hybrid breed of thin-film CIGS solar cells.
We receive an equal number of shareholder questions related to technology progress and financing so I will provide updates to both topics in this newsletter. Ill first share some information about the $5 million dollar financing agreement we inked last week with Lincoln Capital Partners, LLC. Under the new financing structure, well have an opportunity to access capital under favorable terms and put this money to work towards completing the commercialization of our exciting new technology. As we place this money to work, we hope to realize improved valuations and potentially reduce future use of equity capital to fund development operations.
Our CIGS development and commercialization efforts are a multi-phased plan with initial development efforts under Phase 1 requiring approximately $1.65 million, as discussed in our annual report. Weve already come a long way under our development plans in regards to progress and funding, and we anticipate that the new financing agreement will continue to provide us with access to capital today as we work to complete Phase 1, and into the future as we work to transition to sales of our new technology.
As this financing serves as the framework whereby we continue work to build the future opportunities for XsunX, its exciting to also update development progress in addition to the milestones weve shared in previous newsletters. You may recall that there are numerous processes were developing that must work in unison to form a complete CIGS solar cell. Recently, several of the processes weve been developing outside of the co-evaporation process have been used to produce near 8% conversion efficiency solar devices when used in conjunction with sputtering techniques to manufacture the core CIGS absorber.
This development indicates weve established the suitability of these other processes for use with what we anticipate will be a co-evaporation manufacturing technique that will produce our target higher efficiencies and establish the commercial viability of our technology. In addition, it shows weve confirmed that certain aspects of our multi-dimensional technology work and meet our required standards; consequently, were able to concentrate our focus in other areas.
Thank you for your continued support of our company. As we make progress, we look forward to reporting back to you. Full details pertaining to our financing agreement with Lincoln Capital Partners, LLC can be found at our filing with the Securities Exchange Commission. As always, if you have any questions in the meantime, please contact our Investor Relations desk at [email protected] or (888) 797-4527.
Tom Djokovich, CEO
Safe Harbor Statement: Matters discussed in this shareholder news letter contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this shareholder news letter, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.