Evergreen Solar Secures Financing

Evergreen Solar, Inc. a developer, marketer and manufacturer of photovoltaic (PV) products for the worldwide market, has secured equity financing of US$29.475 million from public and private investors in the U.S. and Europe.

Marlboro, Massachusetts – March 25, 2003 [SolarAccess.com] With this funding, Evergreen, the second largest Renewable Energy company in Massachusetts, will expand its production facilities creating up to 100 new jobs over the next two years, adding to an existing workforce of 130. The Massachusetts Renewable Energy Trust(MRET), funded by a small tax on resident’s electric bills, has invested US$2.5 million in Evergreen Solar as part of the financing plan. “We appreciate the support from the Trust, not only the investment but the market support,” said Evergreen President & CEO Mark A. Farber. “After validating our unique String Ribbon technology in our first commercial manufacturing line in 2002, we need to complete our second line to meet the growing demand both at home and abroad.” “This financing is great news for Evergreen and shows our strong commitment to building a vibrant Renewable Energy industry in Massachusetts,” said Robert L. Pratt, the trust’s director. “With targeted infusions of capital from the Trust, we are helping Massachusetts reap the economic and environmental benefits that accrue from having a dynamic clean energy industry that is developing path-breaking products and creating new opportunities for growth.” The purchase agreement specifies that the Series A Preferred will be purchased by a syndicate of institutional investors and one strategic investor. The institutional investors include funds managed by new investors in Evergreen Solar (Perseus, LLC (lead investor), RockPort Capital Partners, CDP Capital-Technology Ventures, the Massachusetts Renewable Energy Trust, and Impax Asset Management); original venture capital investors in the company prior to its November 2000 initial public offering (Nth Power, Arete Corporation, SAM Private Equity, Zero Stage Capital, and Rockefeller & Co.); and other institutional investors (Merrill Lynch Investment Management, Credit Suisse Asset Management, and SAM Smart Energy). In addition, Beacon Power Corporation, a developer of flywheel energy storage systems, will invest US$1 million in the Series A Preferred on the same terms as the institutional investors. Beacon will also purchase a three-year warrant exercisable for 2,400,000 shares of common stock. The warrant has a purchase price of US$100,000 and a cash exercise price of between US$2.93 and US$3.37 per share, depending on the final price of the Series A Preferred. The Massachusetts Technology Collaborative, an independent economic development agency located in Westborough, Massachusetts manages MRET, which was established to provide financial support to the emerging renewable industry while stimulating new supply and demand for green power from sources such as the wind, sun, biomass and fuel cells. During a conference call earlier this month to discuss the company’s 2002 financial results, Farber indicated that without further financing, advancement of the company’s second String Ribbon cell manufacturing line would stall. Based on doubling the capacity of existing String Ribbon cell furnaces and building the second line, Evergreen expects its Marlboro, Massachusetts-based facility to produce 10 to 14 MW of cells and modules.
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