Hoku gets second part of $50M loan
Hoku Scientific Inc. said it has received the second installment of a $50 million loan from its majority owner to help finish the construction of its polysilicon plant in Idaho.
Hoku had expected to receive the $30 million loan from China-based Tianwei New Energy Holdings Co. by Feb. 22, but the financing was delayed because of the Chinese government's process for approving foreign currency transactions, Hoku said in a news release.
Hoku, which is building the plant through its Hoku Materials subsidiary, said it had hoped to have the financing in time to conduct a demonstration of one of its polysilicon reactors this month. As a result of the delay, Hoku now expects to do the demonstration in April.
"We are pleased that with the receipt of recent cash payments we are able to focus on completing our reactor's demonstration in the weeks ahead," said Dustin Shindo, chairman and chief executive officer of Hoku Scientific.
"This is a big step in the right direction as we plan to commence shipments from our plant later this year."
Hoku also said it received of $4 million in polysilicon prepayments on March 1 from Solarfun Power Hong Kong Ltd.
Hoku said the $54 million it has raised will be used to pay down past due vendor balances and liens, and to continue engineering, procurement, and construction activities at its polysilicon plant in Pocatello, Idaho.