On February 13, 2012, Vu1 announced the transition of our manufacturing operations from Sendio in the Czech Republic to the Huayi Lighting Company, LTD in China. After completing an internal review of the Sendio operation in Q4 2011, we determined that it was in the best interest of Vu1 and its shareholders, both in terms of manufacturing and cost of operations, to transition our manufacturing operations to Huayi.
In response to a number of shareholder inquiries regarding the Sendio operation, we would like to offer the following:
- Sendio is a standalone company in CZ.
- Sendio filed for insolvency on Feb. 13, 2012; Vu1 is its largest creditor;
- The current financial situation with Sendio does not and will not have an impact on the day-to-day operations of Vu1.
Lastly, we would like to follow up on the previously announced capital raising activities:
- Vu1 is currently in the process of completing a private placement;
- The private placement is being completed through current individual shareholders and management; the Company is focusing on attracting long-term investors;
- Vu1 is not working with the investment banking community on this transaction;
- The process is moving along very well and given the high level of interest, we anticipate closing this transaction in March 2012; we will issue an 8-K upon closing.
We are very excited for what the future holds for Vu1 Corporation and as CEO Scott Blackstone recently mentioned we are even more excited about the Huayi relationship.