SOURCE: Hoku Scientific, Inc.

June 13, 2008 08:30 ET

Hoku Scientific Enters Into Equity Distribution Agreement

HONOLULU, HI--(Marketwire - June 13, 2008) - Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, today announced it had entered into an Equity Distribution Agreement with UBS Securities LLC ("UBS"). The Equity Distribution Agreement provides that the Company may offer and sell shares of its common stock, par value $0.001 per share, having an aggregate offering price of up to $54,000,000 from time to time through UBS, as sales agent.

The net proceeds from the offering will be used for engineering, procurement and construction of the Company's 3,500 metric ton polysilicon production facility in Pocatello, Idaho, as well as for general corporate purposes. The Company intends to fund construction of the plant through a combination of customer advances, subject to the achievement of certain project milestones, available cash and additional capital. In addition to the $54 million which the Company anticipates raising through the equity distribution program with UBS, the Company estimates it will need to raise approximately an additional $56 million to complete engineering, procurement and construction of the plant, which the Company intends to raise through one or more subsequent debt or equity offerings during calendar year 2009.

Any sales of the shares pursuant to the Equity Distribution Agreement will be made by means of ordinary brokers' transactions on the NASDAQ Global Market at market prices, in block transactions, or as otherwise agreed with UBS. Under the terms of the Agreement, the Company may also sell shares to UBS as principal for UBS' own account at a price agreed upon at the time of sale pursuant to a separate terms agreement to be entered into with UBS at such time. Sale of shares are offered under the prospectus supplement dated June 12, 2008, which was filed pursuant to the Company's universal shelf registration statement previously filed with the SEC.

About Hoku Scientific, Inc.

Hoku Scientific, Inc. (NASDAQ: HOKU) is a diversified, clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market, and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar is a provider of turnkey photovoltaic systems in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. For more information visit www.hokuscientific.com.

Hoku® and Hoku Scientific® are registered trademarks and Hoku Solar™ and Hoku Fuel Cells™ are trademarks of Hoku Scientific, Inc. Hoku Materials™ is a trademark of Hoku Materials, Inc. All rights reserved.

Forward-Looking Statements

This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to Hoku Materials's ability to successfully raise sufficient funds to establish a polysilicon manufacturing facility within the time required in its polysilicon contracts or at all, including its ability to raise $54 million through the UBS offering and to raise an additional $56 million in calendar year 2009; its ability to engineer and construct a production plant for polysilicon; Hoku Materials's ability to manufacture polysilicon; Hoku Materials's ability to meet the delivery schedules in its customer contracts; its ability to successfully achieve the milestones in its polysilicon contracts. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in Hoku Scientific's filings with the Securities and Exchange Commission. Except as required by law, Hoku Scientific assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

A copy of the prospectus may be obtained by contacting Investor Relations at (808) 682-7800.

Contact Information

  • CONTACTS for Hoku Scientific:

    In Hawaii:
    Hoku Scientific
    Tel: 808-682-7800
    Email Contact