DayStar: Evicted By Landlord? No Problemo. Time To Outsouce! (Updated)

Now here is an impressive bit of PR magic.

DayStar (DSTI) filed a brief notice with the SEC yesterday to disclose that it has been tossed out of its headquarters office in Newark, California, by the company’s landlord.

On July�15, 2010, DayStar Technologies Inc. (the �Company�) was notified by its landlord, BMR-Gateway Boulevard LLC (the �Landlord�) that the Company�s lease for the premises located at 7333-7373 Gateway Boulevard in Newark, California was forfeited and terminated, and that the landlord has received a judgment for possession of the premises.

Alert investors knew this was a possibility; the company has had a long-running dispute with the landlord, and in its last 10-Q said that it could get the boot:

We have until June 1, 2010, to cure all alleged defaults under the lease (which the Landlord alleges include failure to pay rent and failure to remove various mechanic�s liens recorded against the property), provided the Landlord has not delivered us a 15-day notice of its intention to terminate the Lease (the �Termination Notice�). If the Landlord provides us with a Termination Notice, we must vacate the premises within 30 days from the date of the Termination Notice.

Then, this morning, the development stage solar company announced that “it is pursuing a strategy of offshore manufacturing of its CIGS solar modules,” noting that it has “encountered challenges in obtaining affordable capital for the build-out and operation of our facility in Newark, California,” i.e., the office from which they were tossed out for not paying the rent.

“At this time, we are pursuing opportunities to manufacture our CIGS module offshore and have begun discussions with several potential partners to implement this strategy,” the company said, adding that the potential partners bring “substantial manufacturing and financial capabilities to the table.”

The company said the situation could result in “joint ventures, licensing agreements, contract manufacturing agreements” or…wait for it…”a reverse merger with or an acquisition of DayStar.”

So guess what happened: DSTI is up $1.56, or 111.4%, to $2.96.

Update: Oh, by the way: yesterday, ahead of the news, the stock jumped 38 cents – 37% – to $1.40, on 580,500 shares, almost 9x the stock’s daily average. Makes the situation look a little…leaky.