Ascent Solar Technologies, Inc. announced today that the Company has entered into two definitive agreements ("Agreements") to raise $35.0 million from an accredited private investor ("Investor").
Pursuant to the Agreements, the Company will issue up to $2.8 million of a principal amount of the Company's newly designated Series E 7% Convertible Preferred Stock ("Series E Preferred Stock"), and enter into a Committed Equity Line ("CEL") Purchase Agreement with the Investor whereby the Company has the right to sell to Investor, and Investor is obligated to purchase from the Company, up to $32.2 million of the Company's common stock, subject to certain limitations, from time to time, over the 36-month period commencing on the date that a registration statement is declared effective by the U.S. Securities and Exchange Commission (the "SEC"), which the Company will file.
"We are extremely satisfied to have secured this new investment. The new funding will not only provide us with ongoing working capital but also will be an important part of our ongoing restructuring exercise of our outstanding senior secured notes which we announced in September and October of 2015," said Victor Lee, President and CEO of Ascent Solar Technologies, Inc. "The new investment structure aims to provide more transparency to investors, as well as to give the Company more flexibility to manage our cash flow requirements without being restricted by a long term debt structure and associated covenants."
Mr. Lee concluded, "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. 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."
The issuance of shares to the Investor is contingent upon receiving approval of the Company's stockholders. The Company expects to seek such approval at a special stockholder meeting in December 2015.