In a regulatory filing with the U.S. Securities and Exchange Commission or SEC on Friday, solar panel maker Solyndra, Inc. requested the withdrawal of its registration statement on Form S-1 for a proposed initial public offering, citing adverse market conditions. The company has instead raised $175 million in a private placement through the sale of secured convertible promissory notes to certain of its existing investors.Fremont, California-based Solyndra revealed that it has decided not to proceed with the offering due to adverse market conditions, and the availability of alternative funding from existing investors. The company confirmed that it has not sold any securities previously in connection with the proposed offering.
According to rules, the company also respectfully advises SEC that it may undertake a subsequent private offering.
On Thursday, Solyndra announced that it has entered into an agreement for the sale of secured convertible promissory notes in an aggregate principal amount of $175 million in a private placement to certain of its existing investors. The proceeds from the sales of such notes will be used to fund the company’s existing operations and support its growth plans, the company added.In a statement, chief executive officer of Solyndra, Chris Gronet then stated, “Given the ongoing uncertainties in the public capital markets, we elected to pursue alternative funding from our existing investor base. This funding allows us to address strong customer demand by maintaining our aggressive growth plans.”
The company expects first production from its second manufacturing facility or Fab 2, to occur in the fourth quarter of 2010, about two months ahead of schedule.
Solyndra filed with the SEC on December 19, 2009 for an initial public offering or IPO of its common stock to raise about $300 million. Solyndra had applied to have its common stock approved for listing under the symbol “SOLY”, but had not indicated the exchange.
Solyndra intended to use the net proceeds of the offering to finance a portion of the costs of the Fab 2, and any remaining balance for general corporate purposes, and to fund acquisitions of complementary businesses, products or technologies.
The company’s first manufacturing facility had an annualized production run rate of 45 MW, which is now being expanded to a production capacity which is expected to reach an annualized production run rate of 110 MW by the fourth fiscal quarter of 2010.
Solyndra earlier received the first-ever U.S. federal government loan guarantee of $535 million for a renewable-energy project from the U.S. Department of Energy. The company commenced commercial shipments of photovoltaic systems in July 2008 and have increased sales volume and revenue every quarter since that date.Solyndra makes thin film solar panels, which are generally cheaper to make than traditional silicon-based panels. The company’s goal is to deliver by 2012 photovoltaic systems for commercial rooftops that are competitive with the retail price of electricity in key markets on a non-subsidized basis.
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