News

9 October 2009

 

Ascent Solar closes public offering and private placement

Ascent Solar Technologies Inc of Thornton, CO, USA, a developer of flexible thin-film photovoltaic modules based on copper indium gallium diselenide (CIGS), has closed its public offering of about 4.6 million shares of common stock (announced on 30 September).

The firm has also closed its concurrent private placement of 769,000 shares 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). 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%.

Both the public offering and private placement are priced at $6.50 per share. Net proceeds (after offering expenses and underwriting discounts and commissions) are about $32.9m.

As of June, Ascent had a $34m deficit, according to a recent filing with the US Securities and Exchange Commission (SEC). The stock prospectus cautioned 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.

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 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.

See related items:

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

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%

Search: Ascent Solar CIGS thin-film PV modules

Visit: www.ascentsolar.com