News

1 October 2009

 

Ascent Solar announces public offering; Norsk Hydro to buy $5m of common stock

Ascent Solar Technologies Inc of Thornton, CO, USA, a developer of flexible thin-film photovoltaic modules based on copper indium gallium diselenide (CIGS), says that it intends to commence an underwritten public offering of 4 million shares of its common stock. It also expects to grant the underwriters a 30-day option to purchase 600,000 additional shares, boosting the total raised to about $36m (assuming an offering price of $7.85 per share, according to the prospectus).

As of June, Ascent had a $34m deficit, according to a recent filing with the US Securities and Exchange Commission (SEC). The stock prospectus cautions that the firm expects to incur net losses “for the foreseeable future”. However, CEO Farhad Moghadam reckons that, by second-half 2010, it will be in a positive-cash-flow position. Key to profitability is to boost cash flow by increasing production, the stock prospectus says.

In addition to general corporate purposes, net proceeds from the offering are therefore expected to be used for an expansion of Ascent’s production capacity. The existing 1.5MW commercial production line at its former headquarters in Littleton, CO is rated at 1.5MW. However, in March the firm opened a further 30MW high-volume production line (for start-up early next year). Projected cost of the facility is about $65m for land, building improvements and equipment.

Ascent also says that its largest shareholder, Norsk Hydro Produksjon AS (a subsidiary of Norsk Hydro ASA of Oslo, Norway, one of the world’s leading suppliers of aluminum), has committed to purchase about $5m of its common stock in a private placement of shares to occur concurrently with (and contingent upon) the closing of the public offering, at a price per share equal to that of the public offering.

Norsk Hydro is interested in building-integrated photovoltaic (BIPV) systems. Previously, in October 2008, Norsk Hydro had raised its stake in Ascent Solar from 23% to about 35%.

See related items:

Ascent and Energy Technologies collaborate on solar systems for soft-walled military shelters

Ascent Solar signs 67MW multi-year supply agreement with TurtleEnergy

Hydro raises stake in Ascent Solar to 35%

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