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14 February 2017

Ascent Solar secures $20m in funding from strategic investor Hong Kong Boone Group

Ascent Solar Technologies Inc of Thornton, CO, USA, which makes lightweight, flexible copper indium gallium diselenide (CIGS) thin-film photovoltaic modules integrated into off-grid applications and its EnerPlex series of consumer products, has entered into a securities purchase agreement for Hong Kong Boone Group Ltd to invest $20m by purchasing the firm's newly designated Series K convertible preferred stock.

Priced at $1000 per share, the Series K preferred stock will be convertible at the option of the investor into restricted common stock at a fixed conversion price of $0.004 per share, representing a premium of about 74% to Ascent Solar's per share closing bid price on the day prior to the signing of the agreement.

The initial closing of the financing is expected to occur on or before 24 February, when Ascent Solar will issue a total of 1000 shares of Series K preferred stock to the investor in exchange for gross proceeds of $1m. Ascent Solar will issue 4000 additional shares of Series K preferred stock in exchange for gross proceeds of $4m in four closings scheduled to occur in March, April, May and June. A final closing is scheduled to occur in July, when the firm will issue 15,000 additional shares in exchange for gross proceeds of $15m. The July closing will be conditioned on mutually satisfactory conditions regarding the use of the $15m proceeds.

In the event that the investor defaults in closing on any tranche of the Series K preferred stock, Ascent Solar would be entitled to redeem 50% of the then outstanding shares at a price per preferred share equal to the $0.01.

Ascent Solar is required to redeem for cash any outstanding shares of the Series K preferred stock at a price per share equal to $1000 plus any accrued but unpaid dividends (if any) on the fifth anniversary of the date of the original issue of such shares. There are no dividends currently payable on this preferred stock, and will only incur dividends if Ascent Solar pays dividends to its common stock holders.

Hong Kong Boone Group is a multi-national industrial group of companies that specializes in industrial control system integration and hydraulic pressure systems. It is part of the Boone Group of Guangzhou City, China, which also specializes in the procurement, planning, installation and ongoing maintenance of on-grid solar farm projects in China.

"Boone Group has been involved in the renewable energy sector for many years and we are deeply impressed with Ascent's lightweight and flexible thin-film CIGS technology, in particular their unique manufacturing process with the award-winning monolithically integrated technology," comments Boone Group's chairman & founder Song Liang. "China will undoubtedly be the world's largest solar market, but it is now predominantly limited to the installation of the rigid, fragile and heavy crystalline silicon-based panels," he adds. "Ascent's unparalleled PV module will have immense potential not only in China but the worldwide market, especially when Ascent can achieve the appropriate economies of scale," he believes. "We hope to help Ascent achieve the economies of scale which their technology can enable."

"The Boone Group understands that achieving scale is a significant prerequisite to the success of Ascent," comments Ascent Solar. "The funding will provide us with ongoing working capital as we continue to focus on the high-value specialty PV market," he adds. "The new investment reinforces our investor's belief in Ascent's strategy and the tremendous potential of the company's lightweight flexible CIGS solar panel."

Tags: Ascent Solar EnerPlex CIGS

Visit: www.AscentSolar.com

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