Evergreen Solar Signs $29M Private Equity AgreementMarch 23, 2003 by Jeff Shepard
Evergreen Solar Inc. (Marlboro, MA), a developer, marketer and manufacturer of photovoltaic products, announced that it has executed a definitive purchase agreement for a private placement equity financing of $29.475 million of series A convertible preferred stock and a warrant. The purchase price of the series A preferred will equal 85 percent of the average closing trading price of Evergreen Solar Common Stock on the Nasdaq National Market for the 60 consecutive trading days ending two trading days before closing, subject to a floor of $0.68 and a ceiling of $1.12 per share. The number of new shares to be issued will be between 26.2 million and 43.2 million, depending on the final purchase price.
The Company intends to use the net proceeds of approximately $28.3 million to substantially expand its manufacturing capacity, to strengthen its sales initiatives, and to support its research and development activities. The manufacturing improvements will include the installation and start up of the second production line over the next 24-month period.