Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) manufacturer and developer of state-of-the-art, flexible thin-film PV and lightweight solutions, reported that it has finalized a Securities Purchase Agreement with Hong Kong Boone Group Limited on February 8, 2017. This deal is an investment agreement of $20 million by buying the firm’s newly designated Series “K” Convertible Preferred Stock.
Pursuant to the contract, shares of the Series K Preferred Stock, rated at $1,000 a share, will be exchangeable at the option of the shareholders into restricted common stock of company at a conversion price of $0.004 a share, showcasing a premium of almost 74% to Ascent’s closing bid price on the day before the signing of the deal. There exist no registration rights pertinent to the Series “K” Preferred Stock.
The preliminary closing of this financing is anticipated to occur before February 24, 2017, when the firm will release 1,000 shares of Series “K” Preferred Stock to the shareholder in lieu for gross proceeds of $1 million. Ascent will release 4,000 additional securities of Series “K” Preferred Stock in lieu for gross proceeds of $4 million, in 4 closings planned to happen in March, April, May and June.
A final completion is scheduled to happen in July, when the firm will release 15,000 additional shares of Ascent’s Series “K” Preferred Stock in lieu for gross proceeds of $15 million. This closing will be dependent on mutually satisfactory terms pertaining the application of such $15 million proceeds.
In case the shareholders default in completion on any tranche of its Series “K” Preferred Stock, the firm would be eligible to redeem 50% of the then due shares of Series “K: Preferred Stock for per preferred share price equal to the $0.01.
In the last trading session, the stock price of Ascent Solar gained over 24% to close the day at $0.00360.