3 Updates to Note About Dyesol (DYE)
In a previous article we highlighted Dyesol, a company looking to become the world’s leading supplier of Dye Solar Cell (DSC) input materials and technology. The Company trades on the Australian exchange (ASX:DYE) and also on the US over the counter (OTC) market (OTCMKTS:DYSOY). In our last article we talked about a $14.4 million investment option granted to The National Industrialization Company of Saudi Arabia (Tasnee), which was set to expire September 14th. Since then, Dyesol has released updates concerning this option along with their fiscal Q1 2014 update and annual report. All of this newly available information has caused the stock price to endure very high levels of volatility and volume as of late. We’ll look at a few notable items taken from these recent updates and reports.
Funding from Tasnee would be a significant event given that it is the second largest industrial company in Saudi Arabia and the second largest producer of titanium oxide in the world. Tasnee are the same investors who recently injected $3.6 million into Dyesol. On the day the Tasnee investment option was set to expire (September 14th), both Dyesol and Tasnee issued a press release stating that the option will be extended for two months until November 14th. In the meantime an independent expert report will be prepared allowing DYE shareholders to assess the merits of the proposed investment. DYE will then look for approval from shareholders in their Annual General Meeting set to take place no later than November 30th. Dyesol acknowledged negative media speculation resulting from this delay in a news release and stated there is no basis for negative speculation.
UK Steel Roofing BIPV Opportunity
A train ride through the UK would show that there is a great deal of industrial property that skirts the rail line and the majority of these buildings use steel roofing. DYE sees primary steel roofing opportunities as a $10 billion BIPV opportunity which is largely untapped because of poor historical investment and the inability of first and second generation technologies to address the challenging light conditions in the UK. DYE is working with UK governments, primarily the Welsh, to make this UK steel roofing project the Company’s lead candidate for large scale manufacture. Dyesol’s relationship with Tata Steel Europe should strengthen the opportunity and perhaps allow them to scale production more quickly.
Liquid to Solid State
Over the past 2-3 years, DYE has been funding both liquid and solid-state solar cell development programs in parallel. Going forward, Dyesol decided to focus focus solely on solid-state solar cell development for mainly two reasons. The first reason was for questionable durability and the second was a concern by investors regarding the considerable sums required to commercialize liquid based cells. Dyesol expects their intellectual property portfolio to be reduced by about 40-50% while they focus solely on solid-state technology with all surplus IP either being sold off or retired.
The month of November will be key for Dyesol to finally secure their Tasnee funding and hopefully execute quickly against their UK steel roofing market opportunity.
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