Solarvalue: Second Ruše Surprise

Solarvalue delays production again and will invest remaining capital in test furnace.
Solarvalue shares to split 8:1 effective today, October 24, 2008.

It’s been 179 days since my last Solarvalue AG (FRA:SV7) post. I hinted at a Ruše Surprise repeat in my last post, Solarvalue produces Solar Grade Silicon sample material. My hint became truth with “Solarvalue reorganizes planning cycle; Deferment in industrial production ramp up” (Deutsch) earlier this month.

Key points from the production deferment press release include:

• Solarvalue now plans to build a test furnace enabling delivery of some hundred kilogram samples to potential customers.
• John Mott said: “To reduce the phosphor level we use unidirectional solidification. To lower boron concentration we use a slagging technique. Both processes work properly, however, we did not achieve all target specifications yet.” (underline added)
• Solarvalue AG CEO Claudia Boehringer said: “It is very unlikely that we will start industrial production in 2008. With our limited funds we are able to finance the planned test furnace. However, we are currently not able to finance the planned initial production capacity of 1,000 metric tons per year.”
• “Based on the adjusted monthly burn rate we expect to have sufficient liquidity until mid of 2009.”

This Handelsblatt.com article, “Unreines Silizium sorgt für saubere Energie” (German only), by Sascha Rentzing had poor timing just days before the Solarvalue production deferment announcement.

These press releases:

“Issuing of „bonus shares“ will become effective tomorrow” (Deutsch)
“Approval proceeding won, final decision, Shareholders’ meeting resolution entered in the commercial register” (Deutsch)

announced the final regulatory approval of a capital increase from company assets already approved by shareholders at the Solarvalue AG Annual Shareholders’ Meeting on March 28, 2008. Frau Boehringer also said:

The capital increase planned for 2008 could not be performed due to a law suit initiated by one shareholder with one share and the unexpected financial market crisis that significantly lowered the Solarvalue share price.

And there are two new entries by John Mott in NEWS FROM RUSE - THE BLOG (Deutsch). Reading between the lines, it looks like Boron removal may still be a challenge for Solarvalue.

Solarvalue post split shares traded early in the €0.41 to €0.99 range in Frankfurt or visit XETRA:SV7 for the latest quote.