Solyndra Announces Private Placement of Secured Convertible Promissory Notes, Status of Fab 2 Construction, and Withdrawal of Registration Statement
Date: 06/17/2010
Company: Solyndra
Source: Solyndra
FREMONT, Calif., June 17, 2010 –Solyndra, Inc. today announced that it has entered into an agreement for the sale of secured convertible promissory notes to certain of its existing investors in an aggregate principal amount of $175 million in a private placement. Proceeds from the sales of such notes will be used to fund the company’s existing operations and support its growth plans. ”Given the ongoing uncertainties in the public capital markets, we elected to pursue alternative funding from our existing investor base. This funding allows us to address strong customer demand by maintaining our aggressive growth plans,” commented Dr. Chris Gronet, CEO of Solyndra.
The company expects first production from its Fab 2 manufacturing complex to occur in the fourth quarter of 2010, approximately two months ahead of schedule. “Fab 2 can’t come on line a minute too soon,” according to Dr. Gronet. “We’ve now sold over 300,000 panels for deployment on commercial rooftop sites in a dozen countries. By the fourth quarter of 2011, we expect our annualized production to exceed 300MW, enabling economies of scale that will substantially reduce our manufacturing costs.”
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