Solar EnerTech Completes $17.3 Million Private Placement With Institutional Investors
source: Solar EnerTech Corp. press release /March 21, 2007
http://www.solarenertech.com/news/release.asp?numb=222
Solar EnerTech Corp. (OTCBB: SOEN) (the “Company”) is pleased to announce the final closing of its private placement with institutional investors in the amount of $9.0 million on March 19, 2007, bringing the total principal amount of Convertible Notes sold in its private placement offering to $17.3 million. Knight Capital Markets, LLC, a NASD member firm, acted as sole placement agent in connection with this offering.
The securities sold by the Company in the private placement offering consisted of $5,000,000 principal amount of Series A Convertible Notes and $12,300,000 principal amount of Series B Convertible Notes. Additionally, an aggregate of 7,246,377 Series A Warrants were issued to the purchasers of the Series A Convertible Notes and an aggregate of 21,578,948 Series B Warrants were issued to the purchasers of the Series B Convertible Notes. The shares of common stock underlying each of the Series B Convertible Notes and Series B Warrants have not been granted registration rights and may not be sold prior to the one year anniversary of their issuance date in accordance with Rule 144 of the Securities Act of 1933, as amended, unless otherwise registered. For a more complete description of the private placement offering, please see our Current Report on Form 8-K/A filed with the Securities and Exchange Commission (“SEC”) on March 20, 2007.
The Company intends to use the net proceeds of the private placement for working capital and general corporate purposes including, but not limited to, the purchase of silicon feedstock to fulfill recent purchase orders. Additional uses will include the purchase of equipment for the Company’s second 25 Megawatt production line.