Evergreen Solar Announces Supply Agreement, AllianceApril 19, 2007 by Jeff Shepard
Evergreen Solar, Inc. announced that it has signed a multi-year polysilicon supply agreement with DC Chemical Co., Ltd with shipments beginning in late 2008 and continuing through 2014. Under the agreement, Evergreen Solar will receive sufficient polysilicon to manufacture a total of approximately 1 GW of photovoltaic solar modules through 2014.
Concurrent with the execution of the supply agreement, DC Chemical agreed to purchase 3 million shares of Evergreen Solar common stock for $12.07 per share, representing the closing price of Evergreen Solar’s common stock on the Nasdaq Global Market on April 16, 2007. Evergreen Solar agreed to issue 4.5 million shares of restricted common stock and 625 shares of restricted preferred stock to DC Chemical. The transaction is expected to close within a week. The preferred stock will automatically convert into 6.25 million shares of restricted common stock upon the termination of the applicable waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976, as amended, which is expected to occur within 30 days of the closing.
Evergreen Solar also announced an alliance with NSTAR (an electric and gas delivery company based in Boston) designed to increase the role of solar power in Eastern Massachusetts. The alliance will leverage Evergreen Solar’s String Ribbon™ solar power technology with NSTAR’s expertise, capabilities and customer relationships.
This alliance is expected to benefit from the recent announcement by Massachusetts Governor Deval Patrick of an innovative and expanded solar incentive program for the state comprising a commitment by the Commonwealth to work toward aggressive goals for installed solar power generating capacity – from roughly 2 MW today to 250 MW by the end of 2017 – by strategic use of renewable energy funds and additional regulatory incentives for solar power adoption by residential, commercial, and industrial customers.
Evergreen Solar also announced its intention to significantly expand its manufacturing operations with a new facility expected to be located on the campus of the Massachusetts Technology Collaborative (MTC) in Westborough, Massachusetts. The company’s Board of Directors has approved the construction of a new $150 million facility that is expected to increase Evergreen Solar’s production capacity in Massachusetts by 70 MW and double its employee base in the state to more than 600 employees. Evergreen Solar currently operates its prototype production and manufacturing facility in Marlboro, Massachusetts.