Hoku surges on deal with Solar-Fabrik
Material sciences company Hoku Scientific (Nasdaq: HOKU) said after the close Wednesday that one of its units, Hoku Materials, will sell and deliver polysilicon to Global Expertise Wafer Division, a subsidiary of Solar-Fabrik AG (SFXG.DE).
Under the contract, up to approximately $185 million may be payable to Hoku Materials. The contract is good for a seven-year period beginning in 2009.
"We are pleased to have signed this agreement with Global Expertise Wafer Division, and look forward to supporting the long-term growth and success of the Solar-Fabrik family of companies," said Dustin Shindo, CEO of Hoku Scientific. "Solar-Fabrik's integration strategy and business model make them an ideal partner for Hoku Materials."
The contract, which provides for the delivery of predetermined volumes of polysilicon each year at set prices, contains an initial direct deposit of $2 million to Hoku Materials upon signing. The contract also requires that Global Expertise Wafer Division make additional prepayments prior to the first shipment in the amount of $51 million if Hoku Materials' successfully delivers.
Shares of Hoku Scientific surged 11.51% or $0.80 to $7.75 in after-hours trading Wednesday.
