Thornton-based Ascent Solar Technologies Inc. — which had been cash-strapped — saw its stock value soar Monday after announcing a $437 million deal with Asian investors.
The maker of thin-film solar panels said it will license its technology for use in east Asia and sell the Chinese and Singaporean investors a 20 percent stake in the company.
“The agreement will give us the money to build out our Thornton factory,” said Ron Eller, the company’s chief executive.
Eller said research and development and the development of high- value specialty products such as portable solar panels for the U.S. Army would remain in Colorado.
Ascent shares closed Monday at $1.21 — a 65 percent increase from Friday’s closing price.
“The deal was a game-changer,” said Adam Krop, an analyst with Ardour Capital Partners. “It gives them some needed capital.”
Ascent earlier this year cut its workforce, including contractors, to 85 from 167 and reduced spending.
In its second-quarter results, filed Monday, Ascent reported an $85 million loss — primarily because of accounting write-downs.
“They still have a long way to go,” Krop said. “They are still at the very early stages of the business.”
The deal with TGF Radiant, a joint venture between Chinese construction company Radiant Group and Singapore-based financial firm Tertius Financial Group, consists of several layers of investment.
Radiant will buy 20 percent of Ascent stock for $7.4 million, or $1.15 a share.
Radiant also may buy an additional 9.5 million Ascent shares at $1.55 per share, or $14.7 million, if the shareholders approve. That would bring Radiant’s ownership to 35 percent, according to Kelly Brandner, spokeswoman for Ascent.
The joint venture will provide $165 million for the construction of the first plant in Asia. The 100-megawatt plant will provide solar panels for rooftop use in east Asia.
The Thornton plant, which will have a 30-megawatt capacity when completed, will focus on specialty markets, Eller said.
Ascent will receive royalties and performance fees that could total $250 million, according to the company.
Eller said Ascent is considering similar licensing agreements in other regions, because the Radiant plant will serve only east Asia.
But it will not be until 2013 that revenues from the Radiant deal begin to flow, Eller said.
“We still have work to do,” Eller said. “In the short term, we have to get into the specialty market.”
Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com
