Apr 18 2007
Evergreen Solar, Inc., a manufacturer of solar power products with its proprietary, low-cost String Ribbon™ wafer technology, announced today that it has signed a multi-year polysilicon supply agreement with DC Chemical Co., Ltd with shipments beginning in late 2008 and continuing through 2014. Under the agreement, Evergreen Solar will receive sufficient polysilicon to manufacture a total of approximately 1 GW of photovoltaic solar modules through 2014.
Concurrent with the execution of the supply agreement, DC Chemical agreed to purchase 3 million shares of Evergreen Solar common stock for $12.07 per share, representing the closing price of Evergreen Solar’s common stock on the Nasdaq Global Market on April 16, 2007. Evergreen Solar agreed to issue 4.5 million shares of restricted common stock and 625 shares of restricted preferred stock to DC Chemical. The transaction is expected to close within a week. The preferred stock will automatically convert into 6.25 million shares of restricted common stock upon the termination of the applicable waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976, as amended, which is expected to occur within 30 days of the closing.
“As an acknowledged leader in chemical technology and production, DC Chemical provides us with a secure source of polysilicon to accelerate the further market penetration of our string ribbon wafer technology,” said Richard M. Feldt, Chairman, President and Chief Executive Officer of Evergreen Solar. “We believe we are the clear industry leader in efficient polysilicon usage, and we are thrilled that DC Chemical shares our enthusiasm about the significant market potential of Evergreen Solar’s technology, as exhibited by their significant investment in our Company.”
“The investment of both our polysilicon manufacturing capacity and our financial resources indicates that we believe in Evergreen Solar’s technology, industry vision and management team,” said Hyunwoo Shin, Executive Vice Chairman of DC Chemical. “We hope that with our ongoing support as both a key supplier and a major shareholder that Evergreen Solar will be able to realize the significant market penetration and financial potential of its wafer technology.”