Ascent Solar cancels USD-32m note, warrant offering

Aug 1, 2014 - US photovoltaic (PV) modules maker Ascent Solar Technologies Inc (NASDAQ:ASTI) said yesterday it had terminated its planned USD-32-million (EUR 23.9m) placement of senior secured convertible notes and warrants.

The company explained that the deal was cancelled because it failed to secure a required consent from a third-party under an existing financing agreement. The note and warrant offering was supposed to provide Ascent Solar with funds to pursue its business plan, including increasing its product sales, extending its offerings, expanding its distribution network and starting its Chinese partnerships.

Meanwhile, Ascent Solar said it had arranged alternative funding totalling USD 3.96 million from an Asian-based investor. As part of the new deal, the US firm has agreed to sell 12 million common shares with no warrants in two tranches at USD 0.33 apiece. The first tranche involving the sale of four million shares has already been completed and the second one is seen to close by mid-August.

“While this financing is not as large as the prior proposed transaction, it does provide the necessary capital infusion and foundation for us to raise additional funding to support our rapidly growing sales,” president and CEO Victor Lee said.

(USD 1.0 = EUR 0.747)

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