SOURCE: Ascent Solar Technologies

Ascent Solar Technologies

November 11, 2015 06:00 ET

Ascent Solar Secures New Equity Investment of up to $35.0 Million, Expects to Fully Repay Existing Senior Secured Convertible Note by January 2016

THORNTON, CO--(Marketwired - Nov 11, 2015) - Ascent Solar Technologies, Inc. (NASDAQ: ASTI), a developer and manufacturer of state-of-the-art, flexible thin-film photovoltaic modules integrated into the company's EnerPlex™ series of consumer products, 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 (i) 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 (ii) 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.

Management Comments

"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."

Series E Preferred Stock

The Company issued 1,000 shares of Series E Preferred Stock to Investor in exchange for $1 million on November 4, 2015, and will issue an additional 500 shares of Series E Preferred Stock to Investor in exchange for $500,000 after the Company's filing of a registration statement covering the re-sale of the common stock underlying the Series E Preferred Stock with the SEC. The Company will further issue an additional 1,300 shares of Series E Preferred Stock to Investor in exchange for $1,300,000 upon the earlier of (i) December 19, 2015 or (ii) the effectiveness of the Company's registration statement mentioned above.

Shares of the Series E Preferred Stock (including the amount of any accrued and unpaid dividends thereon) will be convertible at the option of the holder into common stock at a prevailing fixed conversion price equal to 80% of the average of the two lowest volume weighted average prices ("VWAPs") of the Company's common stock for the ten consecutive trading day period prior to the conversion date. There will not be any further adjustment of the conversion price on a forward looking basis or any true-up shares associated with each conversion. 

Committed Equity Line

Under the terms and subject to the conditions of the CEL Purchase Agreement, at its option 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 next 36 months. 

From time to time, the Company may direct Investor, at its sole discretion and subject to certain conditions, to purchase an amount of shares of common stock up to the lesser of (i) $1,000,000 (calculated using the per share price described below) or (ii) 300% of the average daily trading volume of the Company's common stock over the preceding ten trading day period. The per share purchase price for shares of common stock to be sold by the Company under the CEL Purchase Agreement at each draw down shall be fixed at 80% of the average of the two lowest VWAPs of the common stock for the ten consecutive trading day period prior to the purchase date. There will not be any further adjustment of the purchase price on a forward looking basis or any true-up shares associated with each draw down. 

The Company may not direct Investor to purchase shares of common stock more frequently than once each ten business days. The Company's sales of shares of common stock to Investor under the CEL Purchase Agreement are limited to no more than the number of shares that would result in the beneficial ownership by Investor and its affiliates, at any single point in time, of more than 4.99% of the Company's then outstanding shares of common stock.

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.

About Ascent Solar Technologies:

Ascent Solar Technologies, Inc. is a developer of thin-film photovoltaic modules using flexible plastic substrate materials that are more versatile and rugged than traditional solar panels. Ascent Solar modules, which were named one of TIME Magazine's 50 best inventions for 2011, can be directly integrated into consumer products and off-grid applications, commercial transportation, automotive solutions, space applications, consumer electronics for portable power and durable off-grid solutions. Ascent Solar is headquartered in Thornton, Colorado. For more information, go to www.goenerplex.com and www.ascentsolar.com.

Forward-Looking Statements:

Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission.

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