REC Silicon Goes In For Private Placement

Apr 11,2019
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Norwegian polysilicon company REC Silicon ASA has raised around NOK 170 million ($20 million) in gross proceeds through a private placement by offering 254,381,870 shares for a per share price of NOK 0.67 ($0.079). The transaction took place after close of markets on April 9, 2019.

REC said the private placement was substantially oversubscribed and will help strengthen the company’s liquidity situation until it is able to access the Chinese polysilicon market. Of the proceeds, $3.7 million will be used as non-recurring restructuring costs to curtail and shut down Moses Lake FBR production, unless it reiterates, access to the Chinese market is restored.

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Another $3.1 million and $5.2 million will go in to settle the remaining payments to the Yulin JV and some will be used for general corporate purposes.

REC Silicon has been operating its FBR facility in Moses Lake in America at 25% capacity and decided against shutting it completely in March 2019 as was the initial plan. The management said it is waiting for the US and Chinese governments to sort out their trade issues and help regain access to the Chinese market for solar grade polysilicon.

It was able to improve its Q4/2018 revenues with higher sales volumes for solar grade polysilicon but reported losses in EBITDA.