In the first tranche of the transaction (which has closed), the Company issued 845,309 common shares to Seow and 845,309 shares to TFG Radiant at a fixed per share price of $2.366, representing a 30% premium to the closing price of $1.82 per share on August 28, 2014. The closure results in net proceeds of $4 million to the Company.
In the second tranche of the transaction, the Company will issue 1,425,000 common shares to TFG Radiant at a fixed per share price of $2.80, approximately 54% premium to the closing price on August 28, 2014 and will result in additional net proceeds of approximately $4 million to the Company. The Company expects to hold a special stockholder meeting to approve the issuance of the second tranche shares in October. If stockholder approval is obtained, the second tranche will close shortly after the special stockholder meeting.
TFG Radiant's ownership of the Company has increased to approximately 18.3% of the outstanding common stock subsequent to the closing of the first tranche and would further increase to approximately 26.2% successive to the closing of the second tranche.
Dr. Amit Kumar, Chairman of Ascent Solar, stated, "We are pleased that our largest shareholder continues to demonstrate great confidence in us as our transition to consumer value added products has yielded higher revenues. Our business model and strategy has undergone tremendous change which has translated into growing interest in our new products resulting in strong revenue growth over last year. While the repositioning of the Company is challenging, we now feel that we have completed much of the ground work necessary for us to create value going forward."
Winston Xu, Chairman of TFG Radiant, said, "We feel more upbeat now than ever before with regards to Ascent's future success. Ascent has demonstrated growing sales momentum quarter after quarter. We feel strongly that the Company is at an inflection point of its development, and we believe the foundation has been built to enable increasing growth in sales. As the largest shareholder of Ascent Solar, TFG Radiant strongly believes in Ascent's business plan, and is firmly committed to the Company's strategy for growth. Ascent's game changing technology is truly unique in the industry and the broad array of products launched and soon to be launched will underscore this point."
