Ascent Solar Technologies Inc (OTCMKTS:ASTI) Gets New Funding

Ascent Solar Technologies Inc (OTCMKTS:ASTI) spiked on news that the company secured $1.35 million in new funding. The company badly needed this money because Ascent reported just $132,000 in cash at the end of June. The other positive to this deal is that the fixed conversion price is $.015 per share. While it will dilute shareholders, the deal is not toxic and won't be an overhang on the stock price. Can ASTI finally make the comeback investors have been waiting for?First up, a little background on the company. For those not familiar with Ascent Solar, it’s a former NASDAQ Big Board that got kicked down to the OTC Markets after being unable to maintain its listing. Based in Colorado, the company is a developer of thin-film photovoltaic modules with substrate materials that can be more flexible and affordable than most traditional solar panels. Ascent Solar modules can be directly integrated into standard building materials, aerospace applications, consumer electronics for portable power or configured as stand-alone modules for large scale terrestrial deployment.The new private placement is for $1.35 million of the Company's newly designated Series J 10% Convertible Preferred Stock. Pursuant to the Agreement, shares of the Series J Preferred Stock, including the amount of any accrued and unpaid dividends thereon, will be convertible at the option of the Investor into common stock at a fixed conversion price of $0.015 per share. At closing, the Company issued a total of 225 shares of Series J Preferred Stock to the investor in exchange for gross proceeds of $225,000. The Company will issue an additional 1,125 shares of Series J Preferred Stock in exchange for gross proceeds of $1,125,000 in five subsequent closings scheduled to occur in October and November 2016. CEO Victor Lee said:

"We are satisfied to have secured this new investment. The funding will provide us with ongoing working capital needs as we continue to focus on the high value specialty PV market. The new investment reinforces our Investor's belief in Ascent's strategy and the tremendous potential of the Company's lightweight flexible CIGS solar panel."

The Company's newest debuted product, the Kickr 7 FL (Feather-light), received numerous "Best of Show" awards at the 2016 Outdoor Retailer Show in Salt Lake City, UT held August 3rd - 6th, 2016. These awards included GearJunkie -- Best In Show 2016, The Manual -- Best of Outdoor Retailer 2016, and New Atlas -- Innovative Gear and Gadgetry from OR 2016.The Kickr 7 FL provides approximately 6.5 watts of regulated power while weighing only 5 ounces, and is 50% lighter than the previous equivalent Kickr series of solar chargers. The Kickr 7 FL is considered the world's lightest consumer solar charger. The Kickr 7 FL has also been voted the "best-of-the-best" in "GearJunkie's Outdoor Retailer Readers Choice Award" contest. Matched up against 15 of GearJunkie's favorite products from the 2016 Outdoor Retailer Show, EnerPlex garnered the most votes from GearJunkie's readers and subscribers over a one week contest.We're hoping the company can finally turn things around. The latest quarter was nothing to be proud of. Total net revenue for the second quarter of 2016 was $255K, compared to $2.23M reported for the same period last year, a decline of $1.98M. Net operating loss for the second quarter of 2016 totaled $7.14M, as compared to $6.93M for the second quarter of 2015.Ascent blamed the poor results on several factors. First, Ascent experienced a temporary slowdown of purchase orders from one of its large customers due to a change in management and purchasing strategies. Secondly, there were changes in the terms to some of the company's customer agreements, resulting in the deferral of a portion of revenue recognition in compliance with the US GAAP accounting rules. Thirdly, the retail industry in the consumer electronics and sporting goods sector had been experiencing some major challenges, including the filing for bankruptcy protection by one of its key clients. Finally, Ascent's ability to build on 2015's sales momentum was severely impacted by limitations on raising further growth capital given the negative impact of moving from its Nasdaq listing to the OTCQB Venture Market. CEO Victor Lee said:

"While we are disappointed with the results in the first half of the year, we are confident that the worst is over as we continue to further execute our growth plan for 2016 and beyond. Given the continuous expansion of our retail footprint, particularly with the previously announced increased penetration of our distribution effort into more than 1,000 Verizon Wireless authorized retail stores, we remain optimistic on the opportunities ahead for growth. With entrance into several new retailers in the first half of the year, we are focused on delivering improved results heading into the second half of the year. We have also made great progress in the defense and emergency preparedness market, particularly in the increasing interest shown in our award winning, military graded MilPak E solar and battery integrated blanket, which we believe will add to our significant revenue velocity going forward. We look forward to updating our shareholders as we work through the next phase of our development."

Currently trading with a market cap of $2.9 million, ASTI has its work cut out for it to turn things around and get investor's confidence back. When you consider, however, that shares are trading just above $.02 and with the recent funding coming in at $.015 a share, the low might finally be in on the stock. We will be updating our subscribers as soon as we know more. For the latest updates on ASTI, sign up below!

Disclosure: We have no position in ASTI and have not been compensated for this article.