US Solar Cell Maker Suniva to Go Public via Merger With Sunation
Domestic solar cell manufacturer Suniva will go public through a reverse merger with blank-check company Sunation Energy (SUNE), the company said on Monday.Upon the closing of the transaction, targeted for H2, the combined entity will operate under the Suniva name and maintain Sunation's listing on the Nasdaq Capital Market, it noted.Under the terms of the agreement, pre-merger Sunation stockholders will own equity with an implied value of $2.26 per share, representing a 100% premium over the stock's recent closing price.Following the execution of the merger, pre-merger Suniva stockholders will command about 98.2% of the combined company, while Sunation stockholders will retain roughly 1.8%, subject to final net cash adjustments at closing, it stated.While the US possesses roughly 59 gigawatts of solar module-assembly capacity, it maintains only about 3 gigawatts of active domestic cell capacity, forcing domestic module producers to rely heavily on foreign imports.The strategic tie-up grants Suniva direct access to US public capital markets to accelerate its capacity expansion goals, which include a 4.5-gigawatt facility in Laurens County, South Carolina, to complement its operating 1-gigawatt facility in Georgia.Closing remains subject to customary regulatory hurdles, including the effectiveness of an SEC Form S-4 registration statement, Nasdaq listing clearance, and approval from Sunation shareholders.
