Ascent Solar Technologies, Inc. and TFG Radiant Group announced they have signed a more than $275 million plus royalties long-term, multi-faceted, strategic partnership that includes (i) investments by TFG Radiant in Ascent and (ii) a joint development agreement between TFG Radiant and Ascent to establish manufacturing facilities to be located in East Asia. Under the agreement, TFG Radiant has committed $165 million for the initial East Asia FAB, bringing the total deal value to about $450 million plus royalties.
TFG Radiant has purchased 6,400,000 shares of Ascent stock at a price of $1.15 per share ($7.36m), which represents a premium of 56% relative to the closing price of Ascent stock on August 12, 2011. In addition, under certain conditions (including Ascent obtaining the approval of its shareholders together with TFG Radiant meeting certain performance requirements relating to the initial FAB construction) TFG Radiant will receive the right to purchase an additional 9,500,000 shares of Ascent stock, at a price of $1.55 per share ($14.7m). In connection with the investment, TFG Radiant has the right initially to appoint one member to Ascent’s Board of Directors, and entitlement to appoint a second member if TFG Radiant’s ownership percentage increases in the future pursuant to the exercise of its stock purchase option.
