Patrick01
01-02-2008, 08:24 PM
http://biz.yahoo.com/ap/080102/hoku_scientific_contract.html?.v=1
Hoku Amends 2 Polysilicon Contracts
Wednesday January 2, 8:34 am ET
Hoku Amends 2 Polysilicon Supply Contracts to Keep Customers While Securing Plant Financing
POCATELLO, Idaho (AP) -- Hoku Scientific Inc. said Wednesday it has amended two of its supply agreements in an effort to keep customers while securing financing for a planned polysilicon plant.
The Kapolei, Hawaii-based materials company and Sanyo Electric Co. amended their polysilicon supply agreement to provide Hoku with six additional weeks to secure financing for its plant. The initial deadline was Dec. 31, but is now Feb. 15.
Hoku and Solar-Fabrik AG also amended terms of their supply agreement so that Hoku will provide the company with less polysilicon at higher prices. Hoku provides polysilicon to the solar-power industry to use for photovoltaic products.
Sanyo, Solar-Fabrik, Suntech Power Holdings Co. and Solarfun Power Holdings Co. have committed to prepay a combined total of about $240 million for future product shipments to support the plant's construction and startup. Solar-Fabrik entered the contract through its Global Expertise Wafer Division Ltd. subsidiary.
Sanyo's $370 million contract required the company to make an initial deposit of $2 million and to deposit about 30 percent of the total amount into an escrow account. Those escrowed funds were to be released to Hoku in installments, subject to the company reaching certain polysilicon quality and production milestones.
Solar-Fabrik's contract provided for about $185 million in product shipments over a seven-year period. The company had already paid Hoku $2 million in cash and provided a $25 million standby letter of credit in prepayment of future deliveries. Hoku had the option to reduce the amount of polysilicon to be shipped and increase the price of the products, if Solar-Fabrik did not provide an additional $26 million standby letter of credit by Sept. 30, which it did not do.
However, if Hoku does not build its planned polysilicon plant, does not meet certain production and quality milestones or does not make timely deliveries, the initial $2 million deposit and all other prepayment amounts must be returned to Solar-Fabrik.
Hoku has signed a nonbinding term sheet with Merrill Lynch to borrow up to $185 million for the plant's construction, procurement and startup. Hoku plans to build the plant in Pocatello, Idaho.
"We continue to commit capital to the design and engineering of our plant, and to the purchase of long lead-time items such as the reactors, to stay on schedule for our planned 2009 product deliveries," Hoku Chief Executive Dustin Shindo said in a statement.
Also:
http://biz.yahoo.com/ap/080102/hoku_scientific_polysilicon_plant.html?.v=1
Idaho Power to Build Hoku Power Station
Wednesday January 2, 10:17 am ET
Idaho Power to Build Power Station for Hoku Scientific Planned Polysilicon Plant
NEW YORK (AP) -- Idaho Power Co. will construct a power substation for Hoku Scientific Inc.'s planned polysilicon plant for $14.8 million, Hoku said in a regulatory filing Wednesday.
The Kapolei, Hawaii-based materials company has agreed to make an initial payment of $3.7 million by Jan. 8. The substation and associated facilities are scheduled for completion by Feb. 15, 2009. Idaho Power can invoice Hoku additional amounts for temporary power to start up and operate the planned facility before then.
Hoku is building the plant in Pocatello, Idaho, to provide polysilicon to the solar-power industry, which uses the material as a key component for its products. Polysilicon demand and prices have risen significantly as supplies have come under pressure.
Hoku shares rose 86 cents, or 7.5 percent, to $12.26 in morning trading.
Shares up 9% today. News today was mixed, good short term play if they get financing completed.
Hoku Amends 2 Polysilicon Contracts
Wednesday January 2, 8:34 am ET
Hoku Amends 2 Polysilicon Supply Contracts to Keep Customers While Securing Plant Financing
POCATELLO, Idaho (AP) -- Hoku Scientific Inc. said Wednesday it has amended two of its supply agreements in an effort to keep customers while securing financing for a planned polysilicon plant.
The Kapolei, Hawaii-based materials company and Sanyo Electric Co. amended their polysilicon supply agreement to provide Hoku with six additional weeks to secure financing for its plant. The initial deadline was Dec. 31, but is now Feb. 15.
Hoku and Solar-Fabrik AG also amended terms of their supply agreement so that Hoku will provide the company with less polysilicon at higher prices. Hoku provides polysilicon to the solar-power industry to use for photovoltaic products.
Sanyo, Solar-Fabrik, Suntech Power Holdings Co. and Solarfun Power Holdings Co. have committed to prepay a combined total of about $240 million for future product shipments to support the plant's construction and startup. Solar-Fabrik entered the contract through its Global Expertise Wafer Division Ltd. subsidiary.
Sanyo's $370 million contract required the company to make an initial deposit of $2 million and to deposit about 30 percent of the total amount into an escrow account. Those escrowed funds were to be released to Hoku in installments, subject to the company reaching certain polysilicon quality and production milestones.
Solar-Fabrik's contract provided for about $185 million in product shipments over a seven-year period. The company had already paid Hoku $2 million in cash and provided a $25 million standby letter of credit in prepayment of future deliveries. Hoku had the option to reduce the amount of polysilicon to be shipped and increase the price of the products, if Solar-Fabrik did not provide an additional $26 million standby letter of credit by Sept. 30, which it did not do.
However, if Hoku does not build its planned polysilicon plant, does not meet certain production and quality milestones or does not make timely deliveries, the initial $2 million deposit and all other prepayment amounts must be returned to Solar-Fabrik.
Hoku has signed a nonbinding term sheet with Merrill Lynch to borrow up to $185 million for the plant's construction, procurement and startup. Hoku plans to build the plant in Pocatello, Idaho.
"We continue to commit capital to the design and engineering of our plant, and to the purchase of long lead-time items such as the reactors, to stay on schedule for our planned 2009 product deliveries," Hoku Chief Executive Dustin Shindo said in a statement.
Also:
http://biz.yahoo.com/ap/080102/hoku_scientific_polysilicon_plant.html?.v=1
Idaho Power to Build Hoku Power Station
Wednesday January 2, 10:17 am ET
Idaho Power to Build Power Station for Hoku Scientific Planned Polysilicon Plant
NEW YORK (AP) -- Idaho Power Co. will construct a power substation for Hoku Scientific Inc.'s planned polysilicon plant for $14.8 million, Hoku said in a regulatory filing Wednesday.
The Kapolei, Hawaii-based materials company has agreed to make an initial payment of $3.7 million by Jan. 8. The substation and associated facilities are scheduled for completion by Feb. 15, 2009. Idaho Power can invoice Hoku additional amounts for temporary power to start up and operate the planned facility before then.
Hoku is building the plant in Pocatello, Idaho, to provide polysilicon to the solar-power industry, which uses the material as a key component for its products. Polysilicon demand and prices have risen significantly as supplies have come under pressure.
Hoku shares rose 86 cents, or 7.5 percent, to $12.26 in morning trading.
Shares up 9% today. News today was mixed, good short term play if they get financing completed.