Before the bell today, Solar Enertech announced the additional financing. The company plans to use the net proceeds for working capital, general corporate purposes and the purchase of silicon feedstock. The purchase of the silicon will fulfill recent purchase orders. Another use for the proceeds will include the purchase of equipment for Solar EnerTech’s second 25Mw production line.
The additional financing was needed because of the increased demand for the Company’s products. The company is already ahead of schedule in the construction of the second 25Mw line that was originally scheduled for mid-April. The Company is currently running two shifts, one for solar cell production on the first line and the other for preparation of construction of the second production line.
The President and CEO of Solar Enertech stated that the direct investment in Solar Enertech allows the Company to fulfill its recent purchase orders and begin the construction of the second 25Mw production line. He believes that the additional financing will help the Company execute its business plan and accelerate the growth rate of its business.
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