Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) shares were up over 50% in a one-week period recently, and this was primarily due to the company’s announcement of its strategic investor demonstrating commitment to the company, as well as reaching an agreement to redeem its convertible secured notes. Now, let’s take a look at what the company does first.
Ascent Solar Technologies, Inc. is a developer of award-winning thin-film photovoltaic modules using flexible plastic substrate materials that are more versatile and rugged than traditional solar panels. The company’s modules, which were named one of TIME Magazine’s 50 best inventions for 2011, could be directly integrated into consumer products and off-grid applications, commercial transportation, automotive solutions and space applications, as well as consumer electronics for portable power and durable off-grid solutions.
Now, let’s get into the company news. Ascent Solar recently announced that Hong Kong Boone Group elected to convert 800 shares, or $800K of invested capital, or the Series K Convertible Preferred Stock into common stock of ASTI, at a fixed price of $0.004 per share. Upon this conversion, Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) issued 200M shares of restricted common stock to Boone Group, representing a 4.6% of the company’s total outstanding shares post conversion. Now, the fixed price represents over a 500% premium of the company’s recent share price, at the time.
According to Chairman and Founder of the Boone Group, Mr. Song Liang, “We remain committed to investing in Ascent Solar and are not deterred by the short term fluctuation of the stock price.” Mr. Song continued, “With its unique manufacturing process and worldwide award-winning technology, I am convinced that Ascent’s unparalleled PV module will have immense potential not only in China but in the worldwide market, especially when Ascent can achieve the appropriate economies of scale. We will continue our funding commitment to help Ascent Solar achieve the economies of scale and maximize the full potential of its capabilities.”
Ascent Solar Chief Executive Officer Victor Lee stated, “We are very pleased with the Boone Group’s continuing commitment to Ascent Solar. Electing to convert into Common Stock, despite the large premium over the current stock price, demonstrates the investor’s belief in Ascent’s strategy and the tremendous potential of the Company’s lightweight flexible CIGS solar panel.”
The company also announced that it entered into an agreement with its secured noteholder to fully redeem its outstanding convertible secured notes. According to the company’s press release, “Pursuant to the Agreement, the Company agrees to redeem for cash all outstanding Secured Notes of the Company held by the Holder no later than September 1, 2017. As of the date of the Agreement on May 5, 2017, the current balance of owed principal and accrued and unpaid interest to the Holder is $1,777,191.64. Other terms are detailed in the corresponding 8K.”
Ascent Solar CEO and President stated, “”The purpose of the redemption is to strengthen our balance sheet and finance ongoing operations through equity rather than debt…Referencing our press release made yesterday, pursuant to the Securities Purchase Agreement with the Hong Kong Boone Group dated February 8, 2017, we are very pleased with the Boone Group’s current and continuing funding commitment to Ascent Solar, which we expect will be a primary source for enabling full redemption of the Secured Notes.”
That in mind, the company’s corporate actions to strengthen its balance sheet and finance operations through equity, which would be more beneficial to the Ascent Solar. Now, you might not want to miss anymore key developments in ASTI, like these, because they could potentially move the stock. That said, you don’t really need to spend a lot of time sifting for news because there’s a way around that. All you need to do is subscribe to our free newsletter by entering your email address below, and we’ll send you updates, if any, on ASTI.
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ASTI stock, short or long.