Hoku Scientific sub to amend polysilicon supply agreement with SANYO
Hoku Materials, Inc., a subsidiary of Hoku Scientific, Inc. (Nasdaq: HOKU), said this morning that it will amend its polysilicon supply agreement with SANYO Electric Co., Ltd. (OTC: SANYY) to extend the date for Hoku to complete the financing for its planned polysilicon plant.
Under the terms of the amendment, Hoku or SANYO may now terminate the supply agreement if Hoku has not secured financing for its polysilicon plant by Feb. 15, 2008, a six week extension from the previous deadline of Dec. 31, 2007.
In December, Hoku Scientific announced that it had signed a non-binding term sheet with Merrill Lynch Pierce Fenner & Smith Inc. for Hoku Materials to borrow up to approximately $185 million for the construction, procurement and start-up of its planned polysilicon production plant in Pocatello, Idaho.
Hoku manufactures and sells polysilicon for the solar market.
Shares of Hoku Scientific (HOKU) gained $0.35, or 3.07%, to $11.75 in pre-market trading. Shares of Hoku Scientific have been trading in the range of $2.52 to $14.55 for the past 52 weeks.
