First Solar, Inc. (NASDAQ: FSLR) was facing a nearly busted IPO situation just yesterday. No 52-week low worries. Try nearing the worst of the worst as its shares were danger-close to that $20.00 price. Now we have shares rallying on an otherwise very weak trading day after Forbes.com reported that the funds have started coming in from the Department of Energy for the company’s Antelope Project.
First Solar’s 230 Megawatt Antelope project fears are being alleviated with Exelon Corporation (NYSE: EXC) as the buyer. The hold up was said to be fears that DOE had regarding local permitting, but recent DOE loan guarantee failures (Solyndra for one) have likely made the DOE be more careful about throwing money into projects if there is obvious trouble. Had the deal not closed, First Solar could have been forced to buy the project back. The DoE had approved $646 million in loans for the project.
After the deal is closed, First Solar’s only involvement will be in the construction and operation of the facility.
First Solar closed unofficially up 5.9% at $21.38 against a prior 52-week range of $20.05 to $147.20.
JON C. OGG