Ascent Solar Technologies, manufacturer of flexible thin-film photovoltaic modules integrated into off-grid applications, has achieved a significant milestone related to the Definitive Agreement signed with Suqian Municipal government of China in 2013.
As per the agreement, Suqian will provide facility to manufacture Ascent’s proprietary Copper-Indium-Gallium-Selenium photovoltaic modules on flexible thin films.
Through a joint venture formed by two companies, Ascent’s share will escalate up to 80 percent based on the company’s contributions to JV.
Ascent has to contribute for JV manufacturing equipment, intellectual property assets, proprietary technology and cash for the ownership share while Suqian has to contribute cash for its ownership share.
Ascent’s total contribution for phase 1 and phase 2 has to be RMB 800 million whereas Suqian has to put in RMB 200 million.
Both companies, Ascent and Suqian, are required to ascribe a dollar value to Ascent’s non-cash contributions. The announcement was based on an agreement by the Suqian government to credit RMB 480 million to Ascent’s contribution of its proprietary technology, which will be 60 percent towards Ascent’s total required contribution of $129M USD.
The independent appraisal company hired jointly by both groups to value assets declared that Ascent’s intellectual property assets are RMB 402 million.The remaining 40 percent will be in the form of some equipment from its Colorado plant and or cash.
Victor Lee, president and CEO, Ascent, said, “This deal confirms that Ascent’s CIGS on flexible thin-film technology has a great future. Suqian’s decision to choose Ascent to anchor the Suqian Economic and Industrial Development Science Park was a wise one. With the goal of achieving scaled manufacturing capacity enabling cost -reduction of CIGS modules this joint initiative will pick up momentum.”