Day4 Energy plans merger with Taiwan's Ever Energy

Nov 15, 2011 - Canadian solar photovoltaic (PV) products provider Day4 Energy Inc (TSE:DFE) said yesterday its had signed a letter of intent to merge with Taiwanese solar cell maker Ever Energy Ltd.

The deal, which is to be structured as a plan of arrangement, is subject to striking a definitive agreement, due diligence and various approvals. It comes as Day4 Energy seeks to overcome the challenges in the solar sector.

The Canadian firm also said that in relation to its shift to a new business model based on technology licensing and in response to the difficulties in the industry, it had started a process of cutting 28 jobs during the fourth quarter of 2011, mainly in its offices in British Columbia. The move will reduce Day4 Energy's global workforce to 108.

Further, Day4 Energy said that it had appointed George Rubin as president and chief executive after John MacDonald, who has held the chief executive post since the creation of the company asked those responsibilities to be transferred to a younger person. MacDonald will remain chairman of the company's board.

Day4 Energy made the announcements as it reported a wider CAD-9.3-million (USD 9.1m/EUR 6.7m) net loss for the third quarter of 2011 on revenues that fell 65% to CAD 14.5 million.

(CAD 1 = USD 0.981/EUR 0.722)

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