Ascent Solar Technologies Inc has announced significant progress in reducing its debt with two institutional investors and plans to eliminate all remaining balances upon the completion of its next equity raise.
The company's efforts to reduce debt stem from a financing facility secured in December 2022, totaling up to USD 50 million (EUR 46m) from two undisclosed institutional investors. As part of this arrangement, convertible advance notes and common stock warrants were issued to the investors, featuring certain “full ratchet” anti-dilution adjustments.
Earlier this month, Ascent Solar disclosed that it had entered into warrant repurchase agreements with each of the investors, aiming to avoid potential future full ratchet adjustments of the warrants and bring more certainty to its capital structure. This strategic move is expected to facilitate future capital raising efforts.
Ascent Solar has successfully fully paid off the debt owed to one of the institutional investors. While the debt to the other investor has been substantially reduced, there remains approximately USD 6,700 in notes payable, along with approximately USD 200,000 in outstanding payables. The company intends to settle these remaining balances using proceeds from its upcoming equity raise.
