Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) is a stock that’s been under heavy distribution over the past two years, with a distinct and dramatic acceleration lower out of their 1Q 10-Q that hit on May 12. The stock dropped 98.5% in just the past 4.5 months. Until today. The Company put out a press release this morning describing a new private placement investment entered on Sept. 19, and shares launched. By the close, the stock was up over 81% on 41 mln shares of volume.
The Company has some great products and this investment might lead to reduced existential pressure driven by their sour balance sheet. But one factor that may continue to pressure the context for a company like this is the chronically cheap cost of energy. With Oil under $50, solar is a tough game to win because popular sentiment is driven by economics not environmentalism when it comes to sales growth in alternative energy companies — a fact highlighted by the Company’s -88% dive in revenues this year.
Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) promulgates itself as a development stage company that designs and manufactures photovoltaic integrated consumer electronics; and portable power applications for commercial and military users.
Ascent Solar modules were named one of TIME Magazine’s 50 best inventions for 2011. They can be directly integrated into consumer products and off-grid applications, commercial transportation, automotive solutions, space applications, consumer electronics for portable power and durable off-grid solutions.
It offers Surfr, a battery and solar case for the Apple iPhone 4/4S smart phone, Samsung Galaxy S III, Samsung Galaxy S 4, and Apple iPhone; EnerPlex Kickr, a portable solar charging device; and EnerPlex Jumpr portable power banks.
The company also provides Generatr 1200 and Generatr 100 lithium-ion based large format batteries; Commandr 20, a solar charger; and Kickr II+ and IV+ solar products. Ascent Solar Technologies, Inc. markets and sells its products through e-commerce Website, goenerplex.com, as well as through online retailers and distributors.
ASTI is a developer of thin-film photovoltaic modules using flexible plastic substrate materials that are more versatile and rugged than traditional solar panels.
The company is headquartered in Thornton, Colorado.
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ASTI announced today that they captured a private placement of $1.35 million in the form of a 10% Convertible Preferred Share tranche. The investment is convertible at the option of the Investor into common stock at a fixed conversion price of $0.015 per share. There are no special rights assigned.
The tranche has been designated a “J” series, reflected how many rounds we have already seen here over the years (it starts with a seed round, called “A”).
At closing, the Company issued a total of 225 shares of Series J Preferred Stock to the investor in exchange for gross proceeds of $225,000. The Company will issue an additional 1,125 shares of Series J Preferred Stock in exchange for gross proceeds of $1,125,000 in five subsequent closings scheduled to occur in October and November 2016.
“We are satisfied to have secured this new investment, commented Victor Lee, President and CEO of Ascent Solar Technologies, Inc. The funding will provide us with ongoing working capital needs as we continue to focus on the high value specialty PV market. The new investment reinforces our Investor’s belief in Ascent’s strategy and the tremendous potential of the Company’s lightweight flexible CIGS solar panel.”
Earning a current market cap value of $3.3M, ASTI has a decent store ($131.90k) of cash on the books, in a pool of total assets a bit over $14M, which is balanced by an appreciable load ($6.16M) of total accumulated debt. The new J series round will lessen pressure over the near term and the market clearly loves it. But we will need to start seeing signs of a competitive advantage in the sales numbers to get truly excited in this name for more than a dead cat bounce. The bar for winning at the solar game is set pretty high right now as long we are generally in a bear market context for traditional energy sources. For continuing coverage on ASTI and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!