Ascent Solar Technologies, Inc. (OTCMKTS:ASTI), a stock that was mercilessly pounded into the ground since early August, apparently decided enough was enough.
A $1.12 million dose of cash, raised from an unidentified investor, was the catalyst for an 81.25% flare up in the stock on Monday. The stock rose, phoenix-like, on the back of a hefty volume of 41.06 million shares, when the news of the new funding became public.
Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) makes thin-film photovoltaic modules using flexible plastic substrate materials that are more versatile and rugged than traditional solar panels.
The company’s modules were named as one of the best inventions of 2011 by TIME magazine.
The marketplace apparently is not so impressed. Ascent has been plagued by falling sales and ballooning losses. Last month, the company reported an operating loss of $7.14 million during Q2 on revenue of just $0.26 million.
The financial woes have been duly reflected in its stock price, which plunged to a low of $0.013 earlier this month.
In the Q2 press release the company rued that it was severely constrained in its efforts to build on the sales momentum achieved in 2015 due to difficulties in raising fresh capital – primarily because the listing of the shares was moved from Nasdaq to the OTCQB Venture Market.
Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) to issue convertible preferred stock
Ascent will privately place $1.35 million of the new Series J 10% Convertible Preferred Stock to an anonymous investor. Shares of the Preferred Stock are convertible at the option of the investor into common stock at $0.015 per share.
According to Victor Lee, President and CEO, the cash will provide working capital while the company focuses on its strengths in the high value, specialty PV market.
The unsaid implication of the confidence placed in Ascent’s future prospects therefore had bears scurrying for cover yesterday.
Clearly, the action was stock-specific, because the rest of the stocks in the industry posted mixed results for the day ranging from Canadian Solar Inc. (NASDAQ:CSIQ), which was down 2.24%, to Yingli Green Energy Holding Co Ltd (ADR)(NYSE:YGE), up 1.29% .