Ascent Solar Technologies, Inc. (NASDAQ:ASTI) Issues More Convertible Debt
[[tagnumber 0]]Shares of Ascent Solar Technologies, Inc. (NASDAQ:ASTI) slumped again to the bottom of the trading range. Yesterday, a filing showed the company has issued more convertible debt to accredited investors in an unregistered offering. However, ASTI cash reserves are diminishing in the attempts to eliminate the old debt and its stock can drop even lower.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]Yesterday, ASTI closed the trading session with a 15.56% loss at $0.16 for a share. The trading volume was below the average which suggest traders are losing interest after the new plunge of the share price. Technical indicators are sliding down as well thus ASTI seems to be in a bearish position for today.[[tagnumber 1]] [[tagnumber 0]]The company‘s latest filings suggest it is an urgent need for cash and relies on outside sources as its operations are still unprofitable.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]In September, ASTI entered into an agreement to cancel its outstanding at that time senior convertible notes. The largest part of the amount has been taken from a restricted cash account related to the notes, however, at the end of this month another $2.4 million are due as part of the cancellation price, while the final portion of $3.9 million should be paid in December.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 14]][[tagnumber 1]] [[tagnumber 0]]At the end of June, ASTI had less than $300,000 in cash, thus it seems obvious that the money needed for the debt repayment, and for working capital, will have to be raised somehow on the market. Since that time, the company issued $2 million in new notes which are convertible into shares of common stock at a price of $0.12 per share. In addition, the new shares are secured by substantially all of the company‘s assets.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]The retirement of the old debt should improve the capital structure, though it still comes to reaching profitable operations which the company does not expect to happen in the foreseeable future.[[tagnumber 1]] [[tagnumber 22]] [[tagnumber 1]]
