Thursday, April 28, 2011

China Nuvo Solar provides update on Freya acquisition and financing

WEST PALM BEACH, USA: China Nuvo Solar Energy Inc. updated its progress with the previously announced Freya Energy, Inc. acquisition and its financing plans.

As previously reported, the Company is seeking substantially non-dilutive and non-toxic forms of financing. In that regard, the Company said it has received documentation from an investment fund outlining various types of available financing including purchase order financing, factoring of accounts receivable, equipment leasing and equipment sale leaseback.

None of these financing alternatives involves any type of equity. Based on discussions with principals of the investment fund, the Company believes the fund can tailor certain financing solutions to meet the Company's needs.

In addition, the Company has received several term sheets relating to equity-based financing transactions from funds with significant experience working with the needs of micro-cap companies. Although equity-based transactions involve a certain amount of dilution to stockholders, the company is focusing on those types of financings that would be based on sales of restricted stock.

The Company and its legal counsel have also completed the initial definitive documents for the acquisition and is presently circulating them among the various parties.

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