Solyndra, Inc. said Thursday that it has scrapped plans for an IPO and will instead raise $175 million in a private placement. The company has now raised more than $1 billion in equity financing.
The announcement is not a major surprise. In April, concerns over the company’s financial viability came to light following an audit by PricewaterhouseCoopers LLP. Auditors said the company’s negative cash flows, recurring losses and stockholder deficit "raise substantial doubt about its ability to continue as a going concern."
In Thursday’s announcement the company said market conditions and the availability of alternative funding from existing investors were responsible for the change of plans. “Given the ongoing uncertainties in the public capital markets, we
elected to pursue alternative funding from our existing investor base.
This funding allows us to address strong customer demand by maintaining
our aggressive growth plans,” Solyndra CEO Chris Gronet said.
Proceeds from the private placement will be used to fund the company’s existing operations and support its growth plans.
Solyndra expects first production from its Fab 2 manufacturing complex to occur in 4Q10, approximately two months ahead of schedule.
“Fab 2 can’t come on line a minute too soon,” Gronet said. “We’ve now sold over 300,000 panels for deployment on commercial rooftop sites in a dozen countries. By the fourth quarter of 2011, we expect our annualized production to exceed 300MW, enabling economies of scale that will substantially reduce our manufacturing costs.”
Headquartered in Fremont, California, Solyndra designs and manufactures photovoltaic systems for the commercial rooftop market using proprietary cylindrical modules and thin film technology.
Last year Solyndra received a $535 million U.S. Department of Energy loan guarantee to build its manufacturing facility.
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