Jul 21, 2014 - US photovoltaic (PV) modules maker Ascent Solar Technologies Inc (NASDAQ:ASTI) said today it will issue USD 32 million (EUR 23.7m) worth of senior secured convertible notes and warrants to certain investors.
The funding will help Ascent Solar pursue its business plan, including increasing its product sales, extending its offerings, expanding its distribution network and starting its Chinese partnerships.
The company noted it will have just USD 7 million in gross proceeds on its disposal at completion, while the balance will be placed into control accounts for use over the following 18 months.
Ascent Solar will issue convertible notes carrying 8% annual interest rate and maturing five years following the closing date. The conversion price is set at USD 0.5246 per share, subject to adjustments. Through the private placement, the firm will also offer warrants to buy about 26.69 million common shares, exercisable at the same price.
The completion of the transaction is scheduled for July 25, 2014. WestPark Capital served as the sole placement agent.
Last month, Ascent Solar said it was required to make CNY 800 million (USD 128.8m/EUR 95m) in contributions as part of the first two phases of its planned solar module production joint venture in China. As announced in early January, Ascent and the city of Suqian, located in the eastern province of Jiangsu, have agreed for the US company to build a 100-MW plant there to manufacture thin-film copper indium gallium selenium (CIGS) PV modules.