Solar panel maker Evergreen Solar, Inc. (NASDAQ:ESLR) has begun a secondary offering of common stock to raise $60 million. The company plans to offer the underwriter, Piper Jaffray & Co., a 30-day option on an additional $9 million work of common stock. The offer is being made from Evergreen’s existing shelf registration
The proceeds will primarily be used to fund the company’s 100 megawatt manufacturing facility in Wuhan, China, and to purchase equipment to expand the company’s Midland, Michigan, plant. Remaining funds will go to “general corporate purposes” and “possible payments” to it’s German joint venture, Sovello.
Evergreen has suffered a net loss in each of the past two quarters, and estimates for the current quarter point to a net EPS loss of $0.07. The company has about 165 million shares outstanding and to raise $60 million will need to issue about another 30 million. That’s a dilution of about 18%.
Evergreen shares are trading down more than 2% in the pre-market, at $2.19. The stock’s 52-week trading range is $1.00-$12.64.
Paul Ausick
May 20, 2009
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