A pre-condition to the closure of the transaction was for Ascent to obtain a consent from a third party under an existing financing agreement. This consent could not be obtained on terms that were mutually agreeable to all parties concerned, resulting in the Company and the prospective investors having to terminate the agreement.
Subsequent to the termination of this transaction, Ascent entered into a new Stock Purchase Agreement (SPA) with an Asian-based investor to sell 12 million shares of restricted common stock with no warrants at a fixed price of $0.33 per share for proceeds of $3.96 million in two tranches. This common stock will be restricted for resale until 6 months after the closure of the transaction. The first tranche consisting of 4 million shares has already closed for proceeds of $1.32 million. The second tranche consisting of 8 million shares will close by August 15th, 2014 for additional proceeds of $2.64 million. No placement agent or placement fee is involved in this transaction.
Victor Lee, President and CEO of Ascent Solar, said, “We regret that the $32 million financing agreement did not go through as planned. However, the company was able to quickly secure funding with favorable terms from Asia through referral by our single largest shareholder, TFG Radiant Investment Group. It is extremely gratifying to have the support of our largest shareholder, and to know that we have access to their extensive network when needed. While this financing is not as large as the prior proposed transaction, it does provide the necessary capital infusion and foundation for us to raise additional funding to support our rapidly growing sales as was reported in our preliminary Q2 Revenue press release yesterday.”
The above is a summary of the general terms of the transaction. The complete terms of the financing have been included in a Form 8-K filed by Ascent Solar with the SEC on July 31, 2014.
About Ascent Solar Technologies, Inc.:
Ascent Solar Technologies, Inc. is a developer of thin-film photovoltaic modules with substrate materials that are more flexible, versatile and rugged than traditional solar panels. Ascent Solar modules can be directly integrated into consumer products and off-grid applications, as well as aerospace and building integrated applications. Ascent Solar is headquartered in Thornton, Colorado.