Ascent Solar to issue $8m stock
Colorado-based flexible thin-film PV cell manufacturer Ascent Solar says it will raise $8m capital through issuance of common stock, with half that amount obtained last Thursday.
The move comes after the company in July abruptly shelved an agreement to sell $32m of senior convertible bonds to unnamed “institutional” investors, after a third party, which it did not identify, rejected it.
The initial $4m transaction involved the issuance of 845,309 common shares each to TFG Radiant Investment Group, Ascent’s largest investor, and “Series A” investor Seng Wei Seow. The fixed $2.366 per share price was a 30% premium to Thursday’s closing price of $1.82.
In a planned second tranche in October, Ascent will issue 1,425,000 common shares to TFG Radiant at a fixed per share price of $2.80, a generous 54% premium to Thursday’s closing price.
TFG Radiant now owns 18.3% of the outstanding common stock. This would increase to 26.2% after the second tranche closes, according to Ascent.
“We are pleased that our largest shareholder continues to demonstrate great confidence in us as our transition to consumer value added products has yielded higher revenues,” says Ascent chief executive Amit Kumar.
TFI Radiant adds that it is more “upbeat now than ever before” about Ascent’s future success.
“We feel strongly that the company is at an inflection point of its development, and we believe the foundation has been built to enable increasing growth in sales,” argues TFG Radiant chief executive Winston Xu.