Friday, June 12, 2009

Hoku Scientific Warns On Financing

Hoku Scientific, the firm developing a polysilicon plant in Pocatello, Idaho, warned in its quarterly report Thursday that the firm is struggling to raise capital, due to "downward pressure" on both the PV industry and the spot market price of polysilicon. The firm said that "recent challenges" in the credit and equity market is making it difficult for the firm to raise capital, meaning that the firm may not have sufficient funds to complete the plant in Pocatello, or "continue as a going concern for the next 12 months." Hoku said its customers have committed to provde more than $243M in cash prepayments to help fund the plant, and that it has received $155.5M so far from those customers; the firm said it has so far decreased spending on its project to match cash inflows from its customers. The firm still needs to raise $106 million of additional capital to complete the plant.