In our review of Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) on March 7, 2017, we reported on a financing deal with Hong Kong Boone Group Limited which secured a $20 million investment in the company. Recent press releases indicate a firm commitment by the Hong Kong Boone Group Limited to back Ascent Solar Technologies in its strategy to pursue opportunities in the solar market in China.
Before we get into the details, here is a little background on the Company for those who are not familiar with it. Ascent Solar Technologies Inc. is a Colorado based company, that is an ISO 9001-2015 certified developer and manufacturer of state-of-the-art, lightweight, and flexible thin-film photovoltaic (PV) solutions. The Company’s technology represents the cutting edge of flexible power and their products are more flexible and affordable than most traditional solar panels. They can be can be integrated into many widely utilized building materials, aerospace applications, and consumer electronics for portable power. The technology can also be adapted for large scale terrestrial solar deployment. In 2011, Ascent Solar modules were named one of TIME Magazine’s 50 best inventions.
On May 9, 2017, Ascent Solar Technologies, Inc announced that Hong Kong Boone Group Limited (“Boone Group”) elected to convert 800 shares ($800,000 of invested capital) of the Series K Convertible Preferred Stock (“Series K Preferred Stock”) into Common Stock of the Company at the fixed price of $0.0040 per share, pursuant to the Securities Purchase Agreement between the Company and Boone Group which was entered into on February 8, 2017. Upon conversion, the Company issued 200,000,000 shares of restricted Common Stock to the Boone Group, which represents about 4.6% of the Company’s total outstanding shares post conversion. Mr. Song Liang, Chairman and Founder of the Boone Group, commented:
“We remain committed to investing in Ascent Solar and are not deterred by the short term fluctuation of the stock price.” Mr. Song continued, “With its unique manufacturing process and world-wide award-winning technology, I am convinced that Ascent’s unparalleled PV module will have immense potential not only in China but in the worldwide market, especially when Ascent can achieve the appropriate economies of scale. We will continue our funding commitment to help Ascent Solar achieve the economies of scale and maximize the full potential of its capabilities.”
In a series of similar transactions pursuant to the same Securities Purchase Agreement between the Company and Boone Group which was entered into on February 8, 2017, the Boone Group now owns 800,000,000 shares of the Company, which represents approximately 12.1% of the Company’s total outstanding shares post conversion as of Jun 20, 2017. President and CEO of Ascent Solar, Victor Lee stated:
“The increase in shareholding of Ascent Solar by Boone Group, despite the large premium over the current stock price, clearly demonstrates its belief in Ascent Solar and the Company’s award-winning flexible CIGS solar technology. We look forward to working with the Boone Group to swiftly penetrate the fast growing Chinese market which is exhibiting an annual demand in solar power of well over 60 Gigawatts.”
In an effort to strengthen its balance sheet and finance ongoing operations, Ascent Solar Technologies, Inc entered into an agreement with its secured note holder to fully redeem the outstanding convertible secured notes. Pursuant to the Agreement, the Company agrees to redeem for cash all outstanding Secured Notes of the Company held by the Holder no later than September 1, 2017.
In other important news, Ascent Solar Technologies, Inc announced today that world-renowned scientist Dr. Miguel Contreras has joined the Ascent Solar team effective July 10, 2017 as the Director of Process Engineering reporting directly to the Chief Technology Officer (CTO). Dr. Contreras, formerly a Senior Scientist at the National Renewable Energy Laboratory (NREL), was a key member of the team that achieved the world-record conversion efficiency of 20% with CIGS solar cells. Throughout his career with NREL, Dr. Contreras has produced several world-record energy conversion efficiencies and holds 7 U.S. patents in this field.
ASTI stock recently had a price spike which to it to a high of $.0012 on July 11, 2017. Whether this is the beginning of a reversal remains to be seen. The quarterly financials for the period ending March 31, 2017 don’t indicate any improvement on the revenues side, and the Company is still operating at a Net Loss. Current market capitalization stands at $4.09 million, on 5.11 Billion shares outstanding as of July 14, 2017.
On the surface, the extreme dilution, along with the stock price charts and financial reports for Ascent Solar Technologies, Inc do not make a case to investors in the short run. However, the firm commitment by the Company’s strategic partner Hong Kong Boone Group Limited is difficult to ignore, and serves to make ASTI a viable long term investment. We will be updating our subscribers as soon as we know more. For the latest updates on ASTI, sign up below!
Image courtesy of Karthik Naidu via Flickr
Disclosure: We have previously been compensated a fee of seven thousand five hundred usd regarding ASTI by a non affliated third party, Upstate Webwriters, Inc. This agreement has since expired.