Aug 14, 2013 - Chinese JA Solar Holdings Co Ltd (NASDAQ:JASO) today unveiled plans to launch a registered direct share placement, targeting up to USD 96 million (EUR 72m) in gross proceeds for general corporate needs.
The solar equipment maker has sealed a securities purchase agreement with an unnamed institutional investor. Under the transaction, JA Solar will sell 15.2 million of ordinary stock, represented by 3 million American Depositary Shares (ADS), at USD 7.88 per ADS. The selling price is equal to 94% of the volume-weighted average price of JA Solar's ADSs on August 13. In addition, the Chinese firm will issue to the investor a warrant to buy up to 12.7 million ordinary shares, represented by 2.55 million ADSs. The stock will be acquired within three months after the issuance date at an initial price of USD 1.886 per ordinary share. This represents an exercise price of USD 9.43 per ADS. The investor will also be given the right to purchase up to 12.7 million of JA Solar's ordinary shares, represented by 2.5 million ADSs, within six months after the issuance at USD 1.886 apiece, as well as a warrant to acquire up to 12.7 million more within nine months from the issuance at the same price. Furthermore, the investor will get a Series B warrant to buy up to 50.9 million ordinary shares, represented by 10.2 million ADSs, at USD 2.18 per share.
The net proceeds from the offering are estimated at USD 21.1 million if none of the warrants have been exercised, the solar modules maker said.
The deal, to be managed by Barclays (LON:BARC), is seen to be completed on August 16.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.