SOURCE: The X-Change Corporation

December 08, 2010 07:00 ET

The X-Change Corporation Announces Modified Agreement for 21-Century Silicon

DALLAS, TX--(Marketwire - December 8, 2010) - The X-Change Corporation (PINKSHEETS: XCHC) today announced that the escrow agreement for its formerly announced acquisition of 21-Century Silicon did not close due to 21-Century's inability to complete an audit of their financial records in a timely manner. The parties have mutually agreed to terminate the original contract and have negotiated and concluded an agreement for a fully paid, royalty-free, perpetual, irrevocable, and exclusive license for that company's core technology. X-Change will issue one million shares of common stock for the license.

In addition, X-Change has agreed with the Board of Directors of 21-Century Silicon to purchase all of its assets for four million shares of restricted common stock and to assume certain liabilities of the company. This agreement is subject to one additional shareholders approval, which has been verbally received and will close as soon as it is received in writing.

Through its proprietary technology, processes, and methods, 21-Century Silicon had implemented its new process to manufacture solar-grade silicon metal at half the manufacturing cost, one-tenth the plant setup cost, and in one quarter of the plant setup time of its major competitors. 21-Century Silicon's customers, in turn, benefit from the company's major cost advantages and receive a high-purity product at a price significantly lower than that offered elsewhere within the industry. Although 21-Century had restarted silicon production it has since been halted because of financial shortfalls, that X-Change was unwilling to fund prior to closing.

X-Change has plans to restart production as soon as the purchase of the assets is completed. The company has initially contracted with a firm in Fort Worth, Texas, to build two additional furnaces. The new furnaces, each have a capacity of 200 metric tons per year, are expected to come online in 90 days, and will address the company's substantial backlog. The new furnaces are designed to be continuous flow. After initial testing, an additional four furnaces will be ordered. Funding for the furnaces will be through an existing arrangement with a shareholder of X-Change.

X-Change CEO, Dr. Haviland Wright, said, "Mr. Mei and Dr. Li have not accepted board appointments with X-Change, but will do so after the closing of the asset purchase, and we welcome them as senior technology managers. We intend to build a strong management team that is capable of fully exploiting on a worldwide basis our license to this important technology. Further, we expect to announce soon a new location for the company."

About The X-Change Corporation
XCHC is a public company founded in 1969 to create value for its shareholders by identifying, acquiring, and providing services for private companies that are good growth candidates.

Forward-Looking Statements
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as "anticipate," "seek," intend," "believe," "plan," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. The X-Change Corporation does not undertake any duty nor does it intend to update the results of these forward-looking statements.

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