Composite Technology Completes Equity Placement With Credit Suisse
Friday June 27, 8:33 am ET
IRVINE, CA--(MARKET WIRE)--Jun 27, 2008 -- Composite Technology Corporation (CTC) (OTC BB:CPTC.OB - News) is pleased to announce that Credit Suisse Securities (Europe) Limited (Credit Suisse) has exercised its option to invest a further $40 million. Prior to this investment, Credit Suisse owned 9.3% of the outstanding shares of CTC. This sale resulted in net proceeds to CTC of $40 million.
ADVERTISEMENT
After this investment, Credit Suisse owns approximately 23.7% of the outstanding shares of the company. Further details will be filed in a timely manner in a Form 8-K report with the Securities and Exchange Commission.
Benton Wilcoxon, Chairman and CEO of Composite Technology, stated, "We are very pleased that Credit Suisse has chosen to exercise its option to invest further in our company. This is a strong endorsement of CTC's market position and the technological advantages of ACCC conductors and DeWind D8.2 turbines have when compared to competing products. We are well positioned for growth and this investment should facilitate the negotiation and completion of significant DeWind D8.2 orders as well as expand the growth in ACCC conductor business worldwide."
The securities were offered to accredited investors in reliance on an exemption from the registration requirements of the Securities Act of 1933 (the "Securities Act"). The offering has not been registered under the Securities Act or any state securities of "blue sky" laws, and the securities may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy securities.
About CTC:
Composite Technology Corporation, based in Irvine, California, USA, develops, manufactures and sells innovative high performance electrical transmission and renewable energy generation products through its subsidiaries:
-- CTC Cable Corporation produces composite rod for use in its patented
ACCC* (Aluminum Conductor Composite Core) conductors, which are "high
efficiency conductors" for use in electrical transmission grid systems.
ACCC conductors demonstrate less electricity line losses when compared with
conventional conductors and when deployed in place of conventional
conductors on existing systems, the higher efficiency of ACCC conductors
enables power generators to reduce the amount of power they must generate
while still delivering the same power to the customers. They have also
demonstrated significant savings in upgrade capital costs and operating
expenses when substituted in grid systems for other conductors. ACCC
conductors enable grid operators to reduce blackouts and brownouts,
providing a 'reserve electrical capacity' by operating at higher
temperatures without significant thermal sag of the lines. ACCC conductors
are an innovative economical solution for reconductoring power lines,
constructing new lines and crossing large spans. ACCC composite core is
delivered to qualified conductor manufacturers worldwide for local ACCC
conductor production and resale into local markets.
-- DeWind Inc. designs, produces, and sells the DeWind series of wind
energy turbines, including the new 2 megawatt (MW) D8.2 model available in
both 60Hz and 50Hz; the 2MW D8 model in 50Hz; and the 1.25MW D6 model in
50Hz. The new D8.2 has been operating since early 2007 at Cuxhaven,
Germany, and utilizes the advanced WinDrive® hydrodynamic torque
converter developed by Voith AG in combination with a synchronous AC
generator with high voltage output that is connected directly to the grid
without the use of power conversion electronics. The first 60Hz D8.2 is now
operating at Sweetwater, Texas, where it will initially be used for
demonstration to North American customers. DeWind D8.2 turbines are now
being assembled at TECO Westinghouse Motor Co., in Texas for our North and
South American customers.
*ACCC is a trademark of CTC Cable Corporation
For further information visit our website: www.compositetechcorp.com. Investor Relations Contact: James Carswell, +1-949-428-8500.
This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (the "Company"). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, the ability of the company to convert quotations and framework agreements into firm orders, our customers' fulfillment of payment obligations under the respective supply agreement, our ability to deliver reliable turbines on a timely basis, general economic conditions, the availability of funds for capital expenditure by customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to produce the turbines and acquire their components, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company, including those that are found in the Company's Annual Report filed with the SEC on Form 10-K for fiscal year ended September 30, 2007 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.
Contact:
Investor Relations Contact:
James Carswell
+1-949-428-8500
--------------------------------------------------------------------------------
Source: Composite Technology Corporation
