Southern California firm to acquire Davis-based Octus Inc. Share
By Rick Daysog rdaysog@sacbee.com Published: Wednesday, Feb. 23, 2011 - 12:00 am | Page 8B A Southern California company will acquire Octus Inc., a local green tech company founded by University of California, Davis, graduates.
Lin-Han Equity Corp. of Burbank will get controlling interest in Octus, in a deal valued at $630,000.
The acquisition is expected to close March 15.
Octus, founded in 2009, employs 11 people and develops energy efficiency devices for commercial buildings based on technologies developed at UC Davis. The company will remain publicly traded and will continue to operate out of Davis.
Lin-Han's investment will provide Octus with new capital to expand its business and will resolve the local startup's debt problems.
In December, Octus disclosed that one of its lenders, EAM Inc., had declared that Octus was in default of a $500,000 loan after failing to make a $30,000 interest payment by the set due date.
In a filing with the Securities and Exchange Commission on Tuesday, Octus said that the EAM loan will be made current after Lin-Han completes its investment next month.
As part of the deal, Octus will expand its business by acquiring two building energy efficiency companies – Elan Energy Corp. and Sunarias Corp. – from Florida-based Alternative Energy Partners Inc. in exchange for Octus stock.
The transaction comes less than two months after a Chinese solar company agreed to purchase 70 percent of Roseville-based Solar Power Inc. for $33 million.
LDK Solar Co., one of the world's largest makers of solar wafers, in January agreed to purchase control of Solar Power, a fast-growing local tech company that has struggled with cash flow problems during the past year.
As of March 11, 2010, Hipple is under an officer and director ban:
Pursuant to Section 21C(f) of the Exchange Act, Hipple is prohibited, for a period of five years, from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act, or that is required to file reports pursuant to Section 15(d) of the Exchange Act;
And...
Pursuant to Section 9(b) of the Investment Company Act, Respondent Hipple is prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter, with the right to reapply for association after five (5) years to the appropriate self-regulatory organization, or if there is none, to the Commission;
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