Ascent Solar reports substantial debt reduction

US flexible thin-film photovoltaic (PV) panels maker Ascent Solar Technologies Inc (NASDAQ:ASTI) said today it has substantially reduced its debt with two institutional investors and plans to pay all remaining balances upon completion of its next equity raise.

The case dates back to December 2022 when the company secured an equity-based financing facility of up to USD 50 million (EUR 46m) from two unnamed institutional investors. In this transaction, the investors were issued convertible advance notes along with common stock warrants with certain “full ratchet” anti-dilution adjustments.

Earlier this month, Ascent Solar said it had signed warrant repurchase agreements with each of the investors and added the following: “The Company believes that repurchasing the Warrants, and thereby avoiding potential future full ratchet adjustments of the Warrants, will bring more certainty to the Company’s capital structure. The Company believes this certainty will assist the Company in raising additional capital in the future.”

Now, Ascent Solar has fully paid out the debt to one of the institutional investors. The other has been substantially paid off but still has about USD 6,700 worth of notes payable along with some USD 200,000 of payables outstanding. The company’s intention is to cover this with proceeds from its next equity raise.

(USD 1.0 = EUR 0.921)

Choose your newsletter by Renewables Now. Join for free!