Ascent Solar Announces Termination of $32 Million Secured Convertible Debt Agreement

Ascent Solar Technologies, Inc. announced the transaction contemplated by the Securities Purchase Agreement announced on July 21, 2014 has been terminated.

A pre-condition to the closure of the transaction was for Ascent to obtain a consent from a third party under an existing financing agreement. This consent could not be obtained on terms that were mutually agreeable to all parties concerned, resulting in the company and the prospective investors having to terminate the agreement.

Subsequent to the termination of this transaction, Ascent entered into a new Stock Purchase Agreement (SPA) with an Asian-based investor to sell 12 million shares of restricted common stock with no warrants at a fixed price of $0.33 per share for proceeds of $3.96 million in two tranches.

This common stock will be restricted for resale until six months after the closure of the transaction. The first tranche consisting of 4 million shares has already closed for proceeds of $1.32 million. The second tranche consisting of 8 million shares will close by Aug. 15, 2014 for additional proceeds of $2.64 million.

“We regret that the $32 million financing agreement did not go through as planned,” Victor Lee, president and CEO of Ascent Solar, said. “However, the company was able to quickly secure funding with favorable terms from Asia through referral by our single largest shareholder, TFG Radiant Investment Group. It is extremely gratifying to have the support of our largest shareholder, and to know that we have access to their extensive network when needed. While this financing is not as large as the prior proposed transaction, it does provide the necessary capital infusion and foundation for us to raise additional funding to support our rapidly growing sales as was reported in our preliminary Q2 revenue press release yesterday.”