Tianwei New Energy Holdings Co. Ltd., a Chinese solar product producer, has completed its purchase of additional issues of clean energy company Hoku Scientific Inc.
Tianwei's purchase exceeds 33.3 million shares, enabling it to take as much as 60% shares of Hoku Scientific. The transaction also granted Hoku Scientific a warrant to buy additional 10 million shares of Hoku Scientific's common stock at the price of $2.52 per share.
According to an acquisition agreement signed in September, Tianwei will acquit Hoku Scientific of a $50 million debt and will provide $50 million in loans to Hoku Scientific via China Construction Bank. Additionally, Tianwei is committed to assist Hoku Scientific in gaining possible additional financing in order to facilitate the construction and operation of its solar plant in Pocatello, Idaho.
SOURCE: Tianwei New Energy Holdings