Ascent Solar Technologies, Inc. Announces Initial Closing of Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Ascent Solar Technologies, Inc. announces the initial closing of a public offering of common stock and pre-funded warrants, raising $3.09 million. The offering includes 12,629,460 shares of common stock and 9,426,570 pre-funded warrants. The net proceeds will be used for various purposes, including retiring outstanding cash payable and canceling warrants with a current exercise price.

Insights

Financial Analyst

The capital raise by Ascent Solar Technologies through a public offering of common stock and pre-funded warrants is a strategic financial maneuver to strengthen the company's balance sheet. By securing $3.09 million in gross proceeds, the company plans to retire a portion of its debt related to previously issued secured notes and repurchase warrants. These actions suggest a focus on managing their capital structure and reducing potential dilution from outstanding warrants.

An immediate implication for investors is the potential anti-dilutive effect of repurchasing warrants, which may enhance shareholder value. The financial structure of the pre-funded warrants, exercisable at $0.0001 per share, is quite favorable and indicates a high level of confidence from investors willing to commit capital with a negligible exercise price, likely in anticipation of future growth. However, this needs to be weighed against the dilutive impact of newly issued shares in the short term.

The transaction's timeframe, with a closing window that ends on April 26, demonstrates an urgency to secure funding quickly. This may reflect a pressing need for capital to sustain operations and strategic projects. Investors should monitor the deployment of the acquired funds towards the stated purposes, as well as the company's subsequent financial health and stock performance.

Securities Legal Expert

The offering is conducted on a 'best efforts' basis, meaning that the placement agent, Dawson James Securities, Inc., is not obligated to purchase any unsold shares. The legal representation by Carroll Legal, LLC and ArentFox Schiff LLP underscores the importance of regulatory compliance in such capital market transactions, particularly given the involvement of an effective registration statement filed with the U.S. Securities and Exchange Commission (SEC).

For stakeholders, the adherence to SEC regulations and the provision of a final prospectus is important for transparency and informed decision-making. It is important for current and potential investors to review the prospectus to understand the risks and terms of the offering, as it contains essential information about the company's financial status and the specifics of the securities being offered.

As the offering does not constitute an actual sale in any jurisdiction where it might be unlawful, the legal framework ensures that only qualified investors in appropriate jurisdictions are able to participate, thereby minimizing legal risks associated with the offering.

Market Research Analyst

Ascent Solar Technologies operates in the renewable energy sector, specifically focusing on thin-film photovoltaic (PV) solutions, which is a highly competitive and innovation-driven market. The capital secured through this offering could provide Ascent Solar with the means to invest in research and development, potentially leading to advancements in their PV technology.

Assessing the industry's trajectory and the company's position within it, the investment into R&D could be a differentiating factor in the long-term, potentially enabling Ascent Solar to capitalize on the growing demand for renewable energy solutions. On the flip side, such investments carry inherent risks and the returns are not guaranteed. Stakeholders should evaluate the company's track record in innovation and market adoption of its products when considering the long-term implications of this fundraising event.

Additionally, the move to retire debt and purchase warrants may indicate a strategic pivot towards a more sustainable financial model, which could be perceived positively by the market. However, the effectiveness of these actions in improving the company's market competitiveness and financial robustness will be a key factor to watch in the upcoming financial quarters.

THORNTON, Colo., April 12, 2024 (GLOBE NEWSWIRE) -- Ascent Solar Technologies, Inc. (“Ascent Solar” or the “Company”) (NASDAQ: ASTI), a U.S. innovator in the design and manufacturing of featherweight, flexible thin-film photovoltaic (PV) solutions, today announced the initial closing its previously announced “best efforts” public offering. 12,629,460 shares of common stock and 9,426,570 Pre-Funded Warrants, representing gross proceeds of $3.09 million before deducting offering expenses, have been sold. The prefunded warrants are immediately exercisable at a price of $0.0001 per share of common stock and only expire when such prefunded warrants are fully exercised. The offering will remain open until the earlier of (i) April 26, 2024; or (ii) such date as the Company determines to terminate the offering.

We intend to use the net proceeds from this offering, together with our existing cash, to (i) pay approximately $200,000 to retire an outstanding cash payable related to our secured notes issued in December 2022, (ii) pay $1.8 million to purchase and cancel 2,798,116 warrants with a current exercise price of $1.76 per share that were issued with our secured notes issued in December 2022 that would adjust to 35,277,248 warrants with an exercise price of $0.14 (at an offering price of $0.14 per share), if not purchased and (iii) for general and administration expenses and other general corporate purposes.

Dawson James Securities, Inc. is acting as the exclusive placement agent for the offering.

Carroll Legal, LLC, Denver, CO, represented the Company in connection with the offering, and ArentFox Schiff LLP, Washington, DC, represented the placement agent.

This offering is being made pursuant to an effective registration statement that has been filed with the U.S. Securities and Exchange Commission (the “SEC”). The final prospectus relating to the offering was filed with the SEC on September 29, 2023. The securities may only be offered by means of a prospectus. Copies of the final prospectus may be obtained, when available, at the SEC’s website at www.sec.gov or from Dawson James Securities, Inc. Attention: Prospectus Department, 101 North Federal Highway, Suite 600, Boca Raton, FL 33432, investmentbanking@dawsonjames.com or toll free at 866.928.0928.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Ascent Solar Technologies, Inc.

Backed by 40 years of R&D, 15 years of manufacturing experience, numerous awards, and a comprehensive IP and patent portfolio, Ascent Solar Technologies, Inc. is a leading provider of innovative, high-performance, flexible thin-film solar panels for use in environments where mass, performance, reliability, and resilience matter. Ascent’s photovoltaic (PV) modules have been deployed on space missions, multiple airborne vehicles, agrivoltaic installations, in industrial/commercial construction as well as an extensive range of consumer goods, revolutionizing the use cases and environments for solar power. Ascent Solar’s research and development center and 5-MW nameplate production facility is in Thornton, Colorado. To learn more, visit https://www.ascentsolar.com or follow the Company on LinkedIn and X (formerly Twitter).

Forward-Looking Statements

This press release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms and similar expressions intended to identify forward-looking statements. These statements include statements related to the intended use of proceeds. Ascent Solar cautions readers that forward-looking statements are based on management’s expectations and assumptions as of the date of this news release and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not limited to, risks related to prevailing market conditions, the impact of general economic, industry or political conditions in the United States, and Ascent Solar’s ability to satisfy customary closing conditions associated with the offering. Forward-looking statements reflect its analysis only on their stated date, and Ascent Solar undertakes no obligation to update or revise these statements except as may be required by law.

Investor Relations Contact
ir@ascentsolar.com

Media Contact
Spencer Herrmann
FischTank PR
ascent@fischtankpr.com

FAQ

How much was raised in Ascent Solar Technologies, Inc.'s public offering?

Ascent Solar Technologies, Inc. raised $3.09 million in their public offering.

What is the total number of shares included in the offering?

The offering includes 12,629,460 shares of common stock and 9,426,570 pre-funded warrants.

What are the intended uses of the net proceeds from the offering?

The net proceeds will be used to retire an outstanding cash payable, cancel warrants with a current exercise price, and cover general corporate expenses.

Who is acting as the exclusive placement agent for the offering?

Dawson James Securities, Inc. is acting as the exclusive placement agent for the offering.

When will the offering close?

The offering will remain open until the earlier of April 26, 2024, or when the Company determines to terminate it.