Posted at 12:49 p.m., Thursday, January 10, 2008
Hoku gets $1 million payment, amends deal
Advertiser Staff
Hoku Scientific Inc., a Kapolei-based clean energy products company, said it received a $1 million payment from Solarfun Power Hong Kong Ltd. as part of an amended agreement between the companies.Hoku said Solarfun was to obtain by today a standby letter of credit which would serve as security for $45 million Solarfun is to pay to Hoku between September 2008 and March 2010 for supplying polysilicon. Solarfun makes photovoltaic cells and modules in China.
The agreement has been amended to give Solarfun until Feb. 15 to get the standby letter of credit. As part of the amendment, Solarfun agreed to to pay $1 million to Hoku. Solarfun had earlier made a $10 million cash payment to Hoku as part of the contract announced in November 2007.
"We understand that it can be time consuming to obtain approvals through the Chinese government processes as China is still a country under foreign exchange controls," said Dustin Shindo, Hoku chief executive officer, in a press statement.
Shares of Hoku rose 32 cents to $11.42 at the close of Nasdaq market trading.
