Energy Conversion Devices Inc. (ECD, Rochester Hills, MI) announced that it has entered into definitive agreements with investors relating to a private placement of $87.8 million through the sale of 5,090,000 shares of common stock. The shares of common stock will be issued at a price of $17.25 per share, subject to customary closing conditions.
The closing of the private placement is expected to occur on February 15, 2005. ECD Ovonics has agreed to file a registration statement with the SEC for the resale of common stock within 10 days after closing. ECD Ovonics plans to use the net proceeds of the transaction to double the manufacturing capacity of United Solar Ovonic's triple-junction, thin-film, amorphous silicon photovoltaic products; to exercise the option to purchase for $4.55 per share the 4,376,633 shares of ECD Ovonics' common stock held by TRMI Holdings Inc., an affiliate of ChevronTexaco Corp.; and for general corporate purposes, including research and development investments.
