Ascent Solar to Fully Redeem Outstanding Senior Secured Convertible Notes

Ascent Solar Technologies, Inc. announced an agreement to redeem the entire outstanding principal amount of its senior secured convertible notes of $21.2 million from the note holder.

As previously announced in its 8-K report of November 18, 2014, Ascent had raised a total of $35 million from the note holder. At closing, the company received gross proceeds of approximately $4.5 million and the remaining $30.5 million of gross proceeds from the financing were deposited into a restricted control account.

The proceeds in the control account have been released to the company in increments for working capital needs. The company has made payments to the note holder in the form of common stock issued at a discount to the then prevailing stock price.

On Sept. 4, 2015, the company and the note holder reached agreement to cancel the entire outstanding senior secured convertible note of $21.2 million in return for (i) a return of the balance of $18.8 million withheld in the restricted control account, (ii) cash repayment of $2.4 million in late October 2015 and (iii) cash repayment of $3.9 million in early December 2015.

On Sept. 4, 2015, the company entered into a secured convertible promissory note agreement with two investors for $1.5 million. The promissory notes mature in September 2016 and carry a coupon rate of 8% per annum. The new investors have the option to convert the promissory notes into unregistered common stock of the company at the fixed conversion price of $0.12 per share.

“We believe that the company’s long term growth value has not been fully appreciated in the market and that the company’s stock price has been depressed due to significant sales of stock into the market,” said Victor Lee, president and CEO of Ascent. “We felt the need to clean up our capital structure and are happy to have reached an agreement with the note holder to do that. Going forward, the company will seek to raise capital with new investors who truly appreciate the long term potential of Ascent Solar.”