Solar Power Inc (OTCMKTS:SOPW) a vertically-integrated PV developer confirmed it finalized a definitive purchase deal and option agreement with Yes Yield Investments Limited linked to a private placement of up to $50 million.
As per the terms of the deal, Solar Power accepted to issue Yes Yield a total of almost $25 million of its common stock at a rate of $2.70 a share. Solar Power also granted Yes Yield ‘options’ to buy a total of almost $25 million of its common stock for $2.70 per share. They are being offered and sold exclusively to non-U.S. investors under a private placement in reliance on Regulation S publicized under the U.S. Securities Act of 1933.
The conclusion of the deal depends on the completion of customary closing conditions. As per the deal, the option to buy Solar Power’s common stock can be exercised within seven months from the defined date of the Definitive deals. The common stock issued is restricted securities, and Yes Yield will have to follow a three-month lock-up period. The net proceeds from issue of SOPW common stock will be used for expansion of company’s global PV project plans and general corporate purposes.
Solar Power operates in the segment of photovoltaic solutions and provides its services to a wide range of customers including business, investors, utility, customers, residential and government. The prime focus remains on the downstream PV division including the development, financing, operation, installation, and sale of residential and utility-scale solar power projects in North America, Japan, China and Europe. The Company looks after online energy and investment platform, which enables people to buy companies products.
In last trading session, the stock price of Solar Power declined 0.49% to close the trading session at $2.04. The decline came on a share volume of 104,287 compared to average share volume of 372,429.