Hoku Scientific: Second tranche of $30 million
Hoku Materials, Inc., a wholly-owned subsidiary of Hoku Scientific, Inc., established to manufacture and sell polysilicon for the solar market, announced that it received the second tranche of $30 million for a total loan amount of $50 million from Tianwei New Energy Holdings Co., Ltd., a leading provider of silicon wafers, photovoltaic (PV) cells, modules and systems. Hoku also confirmed receipt of $4 million in polysilicon prepayments on March 1, 2010, from Solarfun Power Hong Kong Limited, pursuant to its polysilicon sales agreement with Hoku.
Hoku reported that the aggregate cash proceeds of $54 million will be used to pay down past due vendor balances and liens, and to continue engineering, procurement, and construction activities at its polysilicon plant in Pocatello, Idaho.
Hoku had expected Tianwei to provide the second tranche of $30 million as agreed no later than February 22, 2010, and as a result it planned to achieve its reactor demonstration in March 2010. Receipt of the funds was delayed two weeks due to the Chinese government's process for approving foreign currency transactions, and Hoku is now reporting that it expects to complete the reactor demonstration in April 2010.
"We are pleased that with the receipt of recent cash payments we are able to focus on completing our reactor demonstration in the weeks ahead," said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. "This is a big step in the right direction as we plan to commence shipments from our plant later this year."
About Hoku Scientific, Inc.
Hoku Scientific is a diversified clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar markets and installs turnkey photovoltaic systems and related services in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. For more information visit www.hokucorp.com.
Hoku, Hoku Solar, and the Hoku Scientific logo are trademarks of Hoku Scientific, Inc., and Hoku Materials is the trademark of Hoku Materials, Inc., all rights reserved. All other trademarks, trade names and service marks appearing in this press release are the property of their respective holders.
This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to Hoku Materials' ability to achieve its reactor demonstration; to engineer and construct a production plant for polysilicon; the timing of when Hoku Materials will resume and complete construction of its polysilicon plant, if at all; its ability to manufacture polysilicon and to fulfill its customer commitments; Hoku Scientific's (including Hoku Materials) future financial performance; Hoku Scientific's (including Hoku Materials) business strategy and plans; and objectives of management for future operations. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause Hoku Scientific's actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in Hoku Scientific's filings with the Securities and Exchange Commission, as applicable. Except as required by law, Hoku Scientific does not assume any obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Hoku Scientific, Inc.
1288 Ala Moana Blvd., Honolulu, Hawaii, 96814, USA
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