Hoku cancels equity distribution agreement with UBS

It has been reported that Fuel-cell component maker Hoku Scientific said it has terminated its equity-distribution agreement with UBS since it no longer required the bridge finance.

Separately, the company said it signed a 10-year polysilicon supply contract worth about $455 million with Wealthy Rise International Ltd, a unit of Hong Kong-based Solargiga Energy Holdings Ltd

Shares of the company rose 13 percent to $6.25 in after-hours trading.

The company, which had earlier raised about $7 million from the sale of about 1 million shares under the agreement with UBS, said this is no longer an appropriate tool for financing since customer prepayments have helped it generate more cash.

Pocatello, Idaho-based Hoku Scientifc said it would begin delivery of polysilicon to Solargiga beginning in early 2010.

The company also cancelled its customer contracts with Sanyo Electric Co Ltd and Global Expertise Wafer Division Ltd, saying its planned polysilicon manufacturing facility was oversubscribed at its designed 3,500 metric ton annual production level.

The company said it plans to move its pilot production and polysilicon reactor demonstration into the first quarter of calendar year 2009, but added its planned first commercial shipment in the first half of 2009 was on schedule.

Shares of the company closed down 3.31 percent at $5.55 Thursday on Nasdaq.

http://ph.news.yahoo.com/rtrs/20080905/tbs-hokuscientific-7318940.html

Source: Yahoo News