LDK Solar Co. Ltd. (NYSE: LDK) remains a very challenged company. This is to the point that the Chinese solar players is raising cash yet again in an amount that is small enough that you might really think LDK is a private company rather than a public one.
LDK sent out notice on Tuesday that the photovoltaic manufacturer sold the remainder of the 12,000,000 newly issued ordinary shares of LDK Solar to Fulai Investments. With the newly issued shares going off at a price of $1.28 per share, the total purchase comes to about $15.36 million. The original share purchase agreement was dated January 21, 2013, and was amended and supplemented by the parties.
As a part of the share purchase agreement, Fulai has the right to designate two nonexecutive directors to LDK Solar’s board now that the transactions have been consummated. The net proceeds are said to be intended for general corporate purposes in LDK Solar’s operations. We would argue that they are being used for survival.
LDK shares are down almost 8% at $1.08, against a 52-week trading range of $0.71 to $4.57. Yahoo! Finance lists the market cap as being $137.5 million, but we have not tallied up the new shares against the other shares to see whether this includes the newly issued shares.