Ascent Solar Technologies, Inc. (NASDAQ: ASTI), a U.S. innovator in the design and manufacture of featherweight, flexible thin-film photovoltaic (PV) solutions, announced today that it has secured an equity-based financing facility in an aggregate principal amount of up to $50 million from two institutional investors. Bryan Garnier & Co acted as sole placement agent and financial advisor to the Company. 

On December 19, 2022, the Company entered into a securities purchase contract with the investors, pursuant to which the Company issued $12,500,000 in convertible advance notes, in a registered direct offering, for an aggregate purchase price of $11,250,000 in cash, net of an original issuance discount of $1,250,000, and an additional $2,500,000 convertible advance notes (the “private placement advance notes”), in a concurrent private placement transaction, for an aggregate purchase price of $2,250,000 in cash, net of an original issuance discount of $250,000, as well as warrants to purchase up to 2,513,405 shares of common stock. The convertible advance notes issued under the facility will bear interest at a rate of 4.5% per annum, which is payable, at the option of ASTI subject to certain conditions, in kind or in cash, and are convertible, at the option of the investors from time to time, into shares of ASTI’s common stock, in the amounts and on the terms in the convertible advance notes, or repayable in cash at maturity 18 months after issuance. Under the Purchase Contract, beginning 210 days after the entry into the Purchase Contract and subject to the satisfaction of certain other terms and conditions, the Company may offer and sell to one of the investors additional convertible advance notes, not to exceed $1,000,000 (or, with the consent of the investor, $2,000,000) in aggregate principal amount in any 30-day period, in subsequent registered direct offerings at a purchase price equal to 90% of the principal amounts of the notes, for up to a maximum aggregate principal amount of $35,000,000 of additional convertible advance notes during the term of the Purchase Contract.  The Purchase Contract contains certain affirmative and negative covenants and events of default.

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The Company intends to use the net proceeds of the financing to pay fees and expenses related to the financing and for working capital and other general corporate purposes, which may include, among other things, financing its continued growth, strategic investments in potential partners, capital expenditures and to satisfy other working capital requirements.

“We’re delighted to have secured this capital commitment, particularly in today’s economic climate,” said Jeffrey Max, ASTI President and CEO.  “Ascent is the leading flexible thin-film solar player in the US; we are seeing a resurgence of innovative OEM demand for thin-film solar solutions, as well as support by government and ESG-conscious investors alike – it’s a very exciting time to be in the renewable energy space.  We believe Ascent’s decades of innovation and manufacturing experience give us a huge advantage.” 

“This capital comes at a terrific time, as we are seeking to expand R&D and production to serve an ever-broader base of industries and use-cases in addition to funding our working capital needs,” Max continued.  “With a strong new leadership team in place, when strategic growth or investment opportunities arise, we believe ASTI will be ready to move.” 

The registered advance note and the underlying shares of common stock were offered by ASTI pursuant to a shelf registration statement on Form S-3, which was filed with the U.S. Securities and Exchange Commission on October 21, 2022, amended on November 3, 2022, and declared effective by the SEC on November 7, 2022, and the base prospectus contained therein. The offering was made only by means of a prospectus supplement that forms a part of the registration statement. 

Source: Ascent Solar Technologies