Ascent Solar Technologies, Inc., a developer and manufacturer of state-of-the-art, flexible thin-film photovoltaic modules integrated into the companys EnerPlex series of consumer products, announced today that it entered into definitive agreements on July 18, 2014 with institutional and certain investors, pursuant to which it will issue $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 by July 25, 2014. WestPark Capital, Inc. acted as the sole placement agent.
We are extremely pleased with the completion of this agreement, especially from these sophisticated institutional investors. 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.
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 companys 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 Solars 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.
Ascent Solar entered into a registration rights agreement with the investors pursuant to which it agreed to file a registration statement following closing with the U.S. Securities and Exchange Commission (the SEC) registering for resale a portion of the shares of common stock issuable upon conversion of, or as payment of principal and interest on, the notes and upon exercise of the warrants.
Victor Lee, President and CEO of Ascent Solar, said, We are extremely pleased with the completion of this agreement, especially from these sophisticated institutional investors. 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.
The significant size of this funding will dramatically advance Ascent Solars business plan and execution. The continued growth in our product sales, the expansion of our product portfolio, the expansion of our distribution network, and the initiation of our partnership in China are all attractive aspects of our business going forward, stated Dr. Amit Kumar, Chairman of the Board of Directors of Ascent Solar.
This press release includes a summary of the general terms of the transaction. The complete terms of the financing have been included in a Form 8-K filed by Ascent Solar with the SEC on July 21, 2014.
