Ascent Solar: Real estate purchase and sale contrac
THORNTON, Colorado - On May 4, 2015, Ascent Solar Technologies, Inc., a Delaware corporation (the "Company"), entered into a real estate purchase and sale contract (the "Sale Agreement") with a real estate investment firm (the "Buyer"). Pursuant to the terms of the Sale Agreement, at closing the Company will sell its Thornton, Colorado headquarters building (the "Building") to the Buyer for a sales price of $11.5 million. The closing of the sale of the Building is subject to customary due diligence by the Buyer and satisfaction of other conditions precedent to closing. The sale of the Building is expected to close in late June or July 2015.
At closing, the Company and the Buyer will enter into a 10-year lease (the "Lease") of the Building. Under the Lease, the Company will lease back the Building from the Buyer at an initial annual rental rate of approximately $1.1 million, subject to annual rent increases of 3.0%. Under the Lease, the Company will have two options to extend the Lease by five years for each such option. The annual rental rate during each option term will be based on the then fair market rental rate for the Building.
The Company expects to derive net proceeds from the transaction of approximately $2.86 million after paying (i) the existing mortgage loan on the Building of $6.12 million, (ii) the existing $1.35 million debt owed to Jefferies & Company secured by a second lien on the Building, (iii) the security deposit and six-months advance rent as required by the Lease, and (iv) brokers commissions and other transaction expenses. Such net proceeds will be used by the Company for working capital and general corporate purposes.
About Ascent Solar Technologies:
Ascent Solar Technologies, Inc. is a developer of thin-film photovoltaic modules using flexible substrate materials that can transform the way solar power generation integrates into everyday life. Ascent Solar modules, which were named one of TIME Magazine's 50 best inventions for 2011, can be directly incorporated into standard building materials, commercial transportation, automotive solutions, space applications, consumer electronics for portable power and durable off-grid solutions. More information can be found atwww.ascentsolar.com.