Thursday, September 15, 2005 8:45:35 AM
SpaceDev Makes $1.2 Million Secured Loan to Starsys
Thursday September 15, 8:30 am ET
POWAY, Calif.--(BUSINESS WIRE)--Sept. 15, 2005--SpaceDev (OTCBB: SPDV - News) announced that on September 8, 2005, the Company made a secured loan in the principal amount of $1.2 million to Starsys Research Corporation, a design, engineering, and manufacturing company located in Boulder, Colorado that provides mechanical systems to the aerospace industry.
In connection with the loan, SpaceDev entered into an exclusivity agreement with Starsys, which provides that Starsys will not discuss a material sale of its assets, a material sale of its stock, a merger, or similar transaction with any other party until October 31, 2005. Prior to completion of the loan, SpaceDev and Starsys entered into a non-binding letter of intent concerning a potential transaction, the structure and economic terms of which, however, remain subject to further negotiations and due diligence by both parties.
The loan accrues interest at 8% per annum and matures on December 31, 2005 or earlier in certain circumstances. No principal or interest payments are due before maturity. The maturity date may be accelerated upon the occurrence of certain events of default. The loan is secured by a security interest in all of the assets of Starsys, subject to an intercreditor agreement with Vectra Bank Colorado, National Association.
Founded in 1986, Starsys is a leading provider of mechanical systems, electromechanical actuators, structures, and mechanisms that open, close, release, and move components on a spacecraft, and has become a primary supplier for motion-control actuators, cover systems, deployment systems, and separation systems. Starsys achieved revenues of approximately $20 million in 2004.
About SpaceDev
SpaceDev (OTCBB: SPDV - News) creates and sells affordable and innovative space products and solutions to government and commercial enterprises. SpaceDev's innovations include the design, manufacture, marketing and operation of sophisticated micro- and nano- satellites, hybrid rocket-based orbital Maneuvering and orbital Transfer Vehicles as well as sub-orbital and orbital hybrid rocket-based propulsion systems for safe human space flight. For more information, visit www.spacedev.com.
About Starsys Research Corporation
Starsys Research Corporation is a design, engineering, and manufacturing company, located in Boulder, Colorado, that provides mechanical systems to the aerospace industry. For more information about Starsys Research Corporation, visit www.starsys.com.
This news release may contain forward-looking statements. Forward-looking statements are based on the Company's current expectations. Actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements contained in this release and to read it in conjunction with the Company's annual report on Form 10-KSB, including the consolidated financial statements filed therewith.
--------------------------------------------------------------------------------
Contact:
The Investor Relations Group
Investor Contact:
Kathryn McNeil/John Nesbett/Dian Griesel, 212-825-3210
or
Media Contact:
Mike Graff/Stephanie Schroeder, 212-825-3210
Thursday September 15, 8:30 am ET
POWAY, Calif.--(BUSINESS WIRE)--Sept. 15, 2005--SpaceDev (OTCBB: SPDV - News) announced that on September 8, 2005, the Company made a secured loan in the principal amount of $1.2 million to Starsys Research Corporation, a design, engineering, and manufacturing company located in Boulder, Colorado that provides mechanical systems to the aerospace industry.
In connection with the loan, SpaceDev entered into an exclusivity agreement with Starsys, which provides that Starsys will not discuss a material sale of its assets, a material sale of its stock, a merger, or similar transaction with any other party until October 31, 2005. Prior to completion of the loan, SpaceDev and Starsys entered into a non-binding letter of intent concerning a potential transaction, the structure and economic terms of which, however, remain subject to further negotiations and due diligence by both parties.
The loan accrues interest at 8% per annum and matures on December 31, 2005 or earlier in certain circumstances. No principal or interest payments are due before maturity. The maturity date may be accelerated upon the occurrence of certain events of default. The loan is secured by a security interest in all of the assets of Starsys, subject to an intercreditor agreement with Vectra Bank Colorado, National Association.
Founded in 1986, Starsys is a leading provider of mechanical systems, electromechanical actuators, structures, and mechanisms that open, close, release, and move components on a spacecraft, and has become a primary supplier for motion-control actuators, cover systems, deployment systems, and separation systems. Starsys achieved revenues of approximately $20 million in 2004.
About SpaceDev
SpaceDev (OTCBB: SPDV - News) creates and sells affordable and innovative space products and solutions to government and commercial enterprises. SpaceDev's innovations include the design, manufacture, marketing and operation of sophisticated micro- and nano- satellites, hybrid rocket-based orbital Maneuvering and orbital Transfer Vehicles as well as sub-orbital and orbital hybrid rocket-based propulsion systems for safe human space flight. For more information, visit www.spacedev.com.
About Starsys Research Corporation
Starsys Research Corporation is a design, engineering, and manufacturing company, located in Boulder, Colorado, that provides mechanical systems to the aerospace industry. For more information about Starsys Research Corporation, visit www.starsys.com.
This news release may contain forward-looking statements. Forward-looking statements are based on the Company's current expectations. Actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements contained in this release and to read it in conjunction with the Company's annual report on Form 10-KSB, including the consolidated financial statements filed therewith.
--------------------------------------------------------------------------------
Contact:
The Investor Relations Group
Investor Contact:
Kathryn McNeil/John Nesbett/Dian Griesel, 212-825-3210
or
Media Contact:
Mike Graff/Stephanie Schroeder, 212-825-3210
Cash is King until further notice!!!
My comments on companies are usually my opinion of long term success (years). The PPS may go up or down greatly in the meantime depending on the number of greedy suckers with money.
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