Solyndra Inc. says it has elected not to proceed with an initial public offering (IPO) of shares of its common stock, due to adverse market conditions and the availability of alternative funding from existing investors.
Instead, the company has entered into an agreement for the sale of secured convertible promissory notes to certain of its existing investors in an aggregate principal amount of $175 million in a private placement. Proceeds from the sales of such notes will be used to fund the company's existing operations and support its growth plans.Â
‘Given the ongoing uncertainties in the public capital markets, we elected to pursue alternative funding from our existing investor base,’ says Dr. Chris Gronet, CEO of Solyndra. ‘This funding allows us to address strong customer demand by maintaining our aggressive growth plans.’
SOURCE: Solyndra Inc.