Hoku Scientific Inc. and Tianwei New Energy Holdings Co. Ltd., a provider of silicon wafers, photovoltaic cells, modules and systems, have closed Tianwei's majority investment in Hoku.
Hoku issued to Tianwei 33,379,287 shares of its common stock, representing 60% of Hoku's fully diluted outstanding shares, and granted to Tianwei a warrant to purchase an additional 10 million shares of Hoku's common stock at a price per share equal to $2.52.
In exchange for the shares of common stock, Tianwei has cancelled $50 million of indebtedness that Hoku would be obligated to repay to Tianwei under certain polysilicon supply agreements, and Tianwei is loaning Hoku $50 million through China Construction Bank, as agent. Tianwei has also committed to assist Hoku in obtaining additional financing that may be required by Hoku to construct and operate its Pocatello, Idaho, facility.
Hoku confirmed that it has issued orders to resume full-scale plant construction and the shipment of equipment that had been placed on hold pending Hoku's receipt of financing.
SOURCE: Hoku Scientific Inc.