Colorado-based developer of thin-film solar modules Ascent Solar Technologies Inc. is issuing $32 million 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 later this month.
Ascent Solar will receive $7 million in gross proceeds at closing. The remaining gross proceeds of $25 million from the financing will be placed at closing into control accounts of the company. Those funds will be released for the company's use in installments over the 18-month period following the closing.
The notes carry an 8% annual interest rate, subject to certain adjustments. The notes will mature on the fifth anniversary of closing. The notes 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.
‘We are extremely pleased with the completion of this agreement, especially from these sophisticated institutional investors,’ says Victor Lee, president and CEO of Ascent Solar. ‘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.’