Hang on - here it is. Company Update and Cancellation of Equity...

Hang on - here it is.

Company Update and Cancellation of Equity Line of Credit
This announcement addresses the following issues:
1. Cancellation of Equity Line of Credit
2. DSC Outperforms in Competitor Testing
3. $3 million underwritten Share Purchase Plan
4. Organisational Restructure and Cost Reduction Initiatives
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1. Cancellation of Equity Line of Credit
Given the significant progress made recently in the planning for commercialisation of the company's
technology with its major project partners, the Board is pleased to announce that it has resolved to cancel
the Equity Line of Credit (ELC) that was established in 2011. The cancellation of this ELC and the
associated monthly share draw-downs have been achieved at zero cost to the Company. Moreover, we
expect this will relieve the downwards pressure on the Company's share price and allow it to be positively rerated
in coming months.
2. DSC Outperforms in Competitor Testing
Recent testing in real solar conditions in partner projects in the UK and Korea have confirmed the
effectiveness of DSC in the built environment, where the results showed DSC consistently outperformed a
range of competing PV technologies. Specifically, in U.K. conditions outperformance was typically in the
vicinity of 30%. The Company has realised that we need to get this compelling and unambiguous message
out more effectively and we have commenced by publishing technology papers in our new e-Newsletter and
will continue doing this in forthcoming editions. These papers also allow more effective marketing to a range
of stakeholders.
3. $3 million underwritten Share Purchase Plan
Many Dyesol shareholders have contacted the Company in recent months and indicated their interest in
financially supporting the Company. In response to this interest, the Board has agreed to offer an
underwritten share purchase plan to all eligible shareholders, the key terms of which will include:
? The Company will offer AUD $3 million of new shares to all eligible shareholders at a price of 18
cents per share;
? The SPP offer will be underwritten to $3 million by Austock Securities Limited, which will provide for
receipt of $3 million in new funds;
? The Company will also accept additional share subscriptions to a maximum capital raise of $6 million
under the SPP Offer.
? The Record Date for the SPP Offer is 28 February 2012.
A letter of invitation to participate in the offer will be sent to all eligible Dyesol shareholders shortly.
4. Organisational Restructure and Cost Reduction Initiatives
While the potential opportunities for the commercialisation of Dyesol's technology are enormous, the
Company must balance the pursuit of these opportunities with careful management of our financial
Market Release (2 pages) – 29 February 2012
www.dyesol.com Page 2 of 2
resources. In recent investor updates there has been increasing focus on cost containment and this has
resulted in a number of initiatives that will reduce monthly "cash burn" by approximately 30%.
One area with potential for significant reductions is the cost minimisation that occurs when staff and activities
are relocated from headquarters to overseas joint-ventures and collaborations where government support
and funding heavily subsidises project development spend. Some of the Company's best scientists and
engineers are now captured in these projects. We will continue to nurture a socially responsible and
collaborative corporate culture and ensure our staff are kept informed and treated fairly during the
organisational transition.
Generally, areas for close attention and reduction are corporate overhead and business development. To
ensure that these targets are achieved, the Company's independent directors have agreed to defer all
directors fees until we see these reductions materialise. As part of our measures we are also seeking to
move from a fixed cash remuneration structure for senior management to alternative, long-term, nonmonetary
compensation.
Lastly, the Chairman and independent directors, after much consideration, have concluded that in order to
progress the proposed transformation of the Company, the executive and board roles of the Company
founders must be changed. Discussions are underway and further details on this important issue will be
announced in the coming days. The Chairman and independent directors have maintained a close
relationship with the Company's major commercialisation partners and believe all decisions announced today
are in the long-term best interests of all Dyesol's valued shareholders.
Yours sincerely,
Richard Caldwell
Chairman