U.S. flexible thin film manufacturer, Ascent Solar has signed two definitive agreements to raise US$35 million from an unidentified private investor.
Under the terms of the agreement, the company intends to raise $2.8 million via three purchase agreements. A further $32.2 million will be raised under a Committed Equity Line Purchase Agreement with the investor.
The funds will be used to both boost working capital and repay debt. "As it stands today, the Company has approximately $1.88 million principal amount of outstanding senior secured notes plus an obligation to retire an additional $2.8 million of senior secured notes in cash scheduled for year end," commented president and CEO, Victor Lee.
He added, "This new funding will form part of the repayment source for the Company to repay the remaining cash obligation of $2.8 million. After that year end payment, we expect that the senior secured notes will be mostly or entirely retired. We look forward to moving ahead with our new Investor and updating our shareholders as we execute on our growth strategy."
Ascent Solar has struggled in recent years. In August, it announced the termination of an agreement in Suqian, China to build a 100 MW solar PV module manufacturing facility. Despite this, its latest earnings report, for H1 2015, indicated that its fortunes may be slowly improving.
Representing an annual increase of around 57%, revenues grew from $1.8 million to $2.2 million and, although still negative, operating loss improved from $-15.5 million, to $-13.8 million. Lee is hoping to secure revenues of $10 million this year for the first time.