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22 July 2014

Ascent Solar announces $32m secured convertible debt agreement

Ascent Solar Technologies Inc of Thornton, CO, USA, which makes lightweight, flexible copper indium gallium diselenide (CIGS) thin-film photovoltaic modules that it integrates into its EnerPlex series of consumer products, has entered into definitive agreements with institutional and certain investors, pursuant to which it will issue $32m principal amount of senior secured convertible notes and warrants to purchase shares of its common stock in a private placement. The transaction is subject to customary closing conditions and is expected to close by 25 July. WestPark Capital Inc acted as the sole placement agent.

Ascent Solar will receive $7m in gross proceeds at closing. The remaining gross proceeds of $25m will be placed at closing into control accounts of the company. Those funds will be released for use in installments over the following 18 months.

The notes carry an 8% annual interest rate (subject to certain adjustments) and will mature on the fifth anniversary of closing. They are convertible, in whole or in part (at the holder's option) into shares of Ascent Solar’s common stock at a price of $0.5246 per share (subject to certain adjustments).

In connection with the sale of the notes, Ascent Solar will issue to the investors warrants to purchase 26,685,729 shares of its common stock. The warrants are exercisable beginning on the issuance date through the fifth anniversary of closing, at $0.5246 per share (subject to certain adjustments). Any funds received by Ascent Solar from exercise of the warrants would be in addition to the financing proceeds.

“This is the largest financing commitment, by far, that we have received from investors in several years and will provide sufficient capital to finance our expected rapid expansion,” says president & CEO Victor Lee.

“The significant size of this funding will dramatically advance Ascent Solar’s business plan and execution,” says Dr Amit Kumar, chairman of Ascent Solar’s board of directors. “The continued growth in our product sales, the expansion of our product portfolio, the expansion of our distribution network, and the initiation of our partnership in China are all attractive aspects of our business going forward.”

The complete terms of the financing have been included in a Form 8-K filed by Ascent Solar with the US Securities and Exchange Commission (SEC) on 21 July.

See related items:

Ascent Solar completes $10m Ironridge financing

Tags: Ascent Solar EnerPlex CIGS

Visit: www.AscentSolar.com

Visit: www.goenerplex.com

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