Hoku Scientific sub extends contract with Sanyo Electric
Hoku Materials, Inc., a subsidiary of Hoku Scientific, Inc. (Nasdaq: HOKU), a manufacturer polysilicon for the solar market, reported this morning that it has elongated its contract with Sanyo Electric Co., Ltd. to 10 years from seven years increasing the value of the contract to approximately $530 million, from approximately $371 million.
Under the amended contract, Hoku Materials will begin shipments to Sanyo by the beginning of 2010; however, the agreement also provides that Hoku Materials may ship product to Sanyo in 2009.
Hoku Materials said it and Sanyo also agreed to extend the date on which either party may terminate the supply agreement if Hoku Materials is unable to complete the financing for its polysilicon production plant to May 31, 2008.
The amendment also extends the dates when Sanyo may terminate the agreement if Hoku Materials is unable to complete the various polysilicon production, testing, process implementation and shipment milestones.
Investors cheered, sending shares of parent company, Hoku Scientific (HOKU), up 3.9%, or $0.35, to $9.42 on heavy volume in pre-market trading. Shares of Hoku Scientific have been trading in the range of $4 to $14.88 for the past 52 weeks.
