Ascent Solar Technologies, Inc. announced today the signing of a definitive agreement to raise $35 million in financing from one institutional investor. Pursuant to the definitive agreement, the Company will issue (i) $32 million principal amount of senior secured convertible notes, (ii) $3 million of Series D convertible preferred stock and (iii) warrants to purchase shares of its common stock. The transaction is subject to customary closing conditions and is expected to close by November 21, 2014. WestPark Capital, Inc. acted as the sole placement agent.
Ascent Solar will receive $4.5 million in gross proceeds at closing. The remaining $30.5 million of gross proceeds from the financing will be placed at closing into restricted control accounts of the Company. The Company expects to receive an additional $2.5 million of gross proceeds from the control accounts in December 2014 or January 2015, conditioned upon receiving stockholder approval of certain share issuances relating to the financing and having a resale registration statement declared effective. The Company expects to receive an additional $6.0 million of gross proceeds from the control accounts 75 days after receiving the installment of $2.5 million. Thereafter, the remaining gross proceeds of $22 million will be released for the Company’s use in $6.0 million installments each 90 days thereafter.
Ascent intends to use the proceeds of the offering to fund the continued operations and expansion of its retail channels for its EnerPlex products in the US, Europe and Asia , brand building, as well as the launch of additional EnerPlex products.
