Ascent Solar Bogged Down By Spot Offering (ASTI)
Ascent Solar Technologies, Inc. (NASDAQ: ASTI) is seeing shares under pressure because of its secondary offering. The company priced a secondary offering of 3,800,000 shares of common stock for $14.00 per share. After the drop and before the added share inclusion, Ascent’s market cap was $210 million.
J.P. Morgan was the managing lead underwriter; co-managers were listed as Cowen & Co., Jefferies, and Merriman Curhan Ford.
Ascent plans to use the net proceeds from the offering for the design, purchase, installation, qualification and testing of production tools for approximately 30 MW capacity for the production of thin-film PV modules, and for general corporate purposes.
Unfortunately, the company’s close was $15.89 yesterday, so it took a huge haircut for this share sale. Its 52-week trading range is $6.50 to $28.35. Shares are down 6% at $14.94, and with such a deep discount it is surprising that shares are not down even more.
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Jon C. Ogg
May 16, 2008
Jon Ogg produces and edits the “10 Stocks Under $10” newsletter and he does not own securities in the companies he covers.