Energy Conversion Devices, Inc. (ECD Ovonics) (Nasdaq: ENER) has announced that the underwriters of its public offering of 7,000,000 shares of common stock, completed on March 7, 2006, have exercised their over-allotment option in full and purchased an additional 1,050,000 shares of ECD common stock. ECD Ovonics received an additional $51.4 million in gross proceeds from the exercise of the over-allotment option, before underwriting discounts and commissions and expenses payable by the company, bringing the total gross proceeds to ECD Ovonics from the offering to approximately $375.6 million.
In February, the Board of Directors of ECD Ovonics approved a plan to expand the solar module manufacturing capacity of ECD Ovonics’ wholly owned subsidiary, United Solar Ovonic, to 300 megawatts (MW) by 2010. Approximately $150 million of the net proceeds from the March 2006 equity offering will be used for the next phase of the expansion plan, which includes the construction of a 50MW manufacturing facility in Greenville, Mich., announced by ECD Ovonics on March 22, 2006. United Solar Ovonic’s existing 25MW production facility is located in Auburn Hills, Mich. In July 2005, United Solar Ovonic broke ground for a second 25MW production facility also located in Auburn Hills.
UBS Investment Bank acted as sole book-running manager for the offering. Cowen & Company, First Albany Capital, Piper Jaffray, Jefferies & Company, Merriman Curhan Ford & Co. and Tejas Securities Group, Inc. acted as co- managers for the offering.
A registration statement relating to the shares was filed with the Securities and Exchange Commission and is effective.
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