Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Wednesday, January 27, 2010

Hoku Scientific and parent mull fund to finance photovoltaic systems

BY Greg Wiles
Advertiser Staff Writer

Tianwei New Energy Holdings Co. Ltd., and its 60-percent owned Hoku Scientific Inc., announced they’ve signed a letter of intent to explore the creation of a fund with as much as $50 million to provide financing for photovoltaic systems.

The fund could be tapped by firms buying large photovoltaic systems installed by Hoku Scientific.
Hoku said the financing pool would give it a competitive advantage as it competes with a myriad of companies seeking to install such systems. Chengdu, China-based Tianwei said the fund might be attractive to Chinese investors looking for ways to capitalize on a growing market in the U.S.
Tianwei became the largest shareholder in Honolulu-based Hoku in October as the Hawaiçi company sought new funding and help in finishing an Idaho manufacturing plant for polysilicon, a material used in the making of photovoltaic cells.
Separately, Hoku yesterday announced its financial results for the quarter ended Dec. 31.
The company reported its 12th quarterly loss in the past 13 quarters, as its bottom line deficit widened to $1.27 million or 6 cents a share.
The company said its focus during the quarter was on on obtaining financing for the company’s polysilicon facility and that its solar installation business suffered as a result. It also said there were slower purchasing cycles for photovoltaic systems in Hawaiçi in 2009.
The results compared to a loss a year earlier of $863,000 or 4 cents a share.
Revenue for the quarter shrank to $259,000 from $767,000 a year earlier.