Vu1 Corporation Announces Conversion of Debt to Equity

SEATTLE, Sept. 28 /PRNewswire/ -- Vu1 Corporation (OTCBB: VUOC), a developer and manufacturer of mercury-free, energy-efficient, general illumination lighting technology, today announced that its note holders  have converted $6.2 million (100%) of its outstanding convertible debt into common stock at a conversion price of $0.40 per share. Following the conversion, the company's balance sheet is effectively debt free.

Approximately $2.8 million of the debt converted to equity consisted of a loan by SAM Special Opportunities Fund, L.P.  The balance of the debt converted to equity of approximately $3.4 million consisted of a loan by Full Spectrum Capital, LLC.  The proceeds of the convertible debt funds were used for general working capital and for the development of Vu1's R30 Electron Stimulated Luminescence™ (ESL™) reflector energy-efficient light bulbs, which is expected to receive UL Certification imminently and to enter commercial production in the fourth quarter of 2010.  

"We have been avid supporters of Vu1 because we believe its ESL lighting platform is a game-changer in the lighting technology space. Vu1 is now poised to capture a massive market opportunity and its bulb addresses consumers' concerns regarding current lighting alternatives, offering the unique combination of being mercury free, energy efficient and competitively priced," commented Gregory Owens, Jr., Director of Vu1 and Portfolio Manager at SAM Advisors, LLC.  "Investors' willingness to convert their debt into equity reflects confidence in Vu1's exciting prospects, starting with the manufacture and delivery of the first R30 bulbs to customers later this year and beginning to build revenue momentum."

Commenting on the debt conversion, Vu1's Chief Operating Officer, Philip G. Styles said: "As we enter the fourth quarter virtually debt free, Vu1 is now in a strong position to focus on building market share for its unique clean lighting technology, and also to explore a number of exciting opportunities for value creation for all of its shareholders."

Vu1's R30 ESL™ bulb is a direct replacement for the 65W incandescent flood bulb. It is virtually indistinguishable from the traditional incandescent lamp it replaces and, unlike compact fluorescent lamps (CFLs), is mercury-free.  The Company's ESL™ Lighting Technology uses accelerated electrons to stimulate phosphor to create light, making the surface of the bulb "glow," providing natural light quality, energy efficiency and a long bulb life of 10,000 hours.  

About Vu1 Corporation

Vu1 Corporation is dedicated to applying its technology to produce energy efficient, environmentally-friendly lighting solutions worldwide. Vu1 is developing a new, energy efficient light bulb to provide the consumer market with the first affordable, non-toxic light bulb with features consumers are demanding and not receiving from existing products. More information about Vu1 is available at: www.Vu1.com and the Vu1 Blog at Vu1corp.blogspot.com.

For product enquires please contact [email protected].

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release includes forward-looking statements including, but not limited to, our ability to obtain the necessary funding required for our operations, the future demonstration and commercial availability of our light bulb, independent testing laboratories certification results, timing for bulb production, manufacturing capability of our facility, future interest of channel partners and distributors, our strategic planning and business development plans, future applications of the technology, the viability, pricing and acceptance of our products in the market.. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those described in the forward-looking statements. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend"  and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, as well as the risks and other factors set forth in our periodic filings with the U.S. Securities and Exchange Commission (including our Form 10-K for the year ended December 31, 2009 and our other periodic reports as filed from time to time).

SOURCE Vu1 Corporation

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