Solar upstart Solyndra mothballs IPO plans
The California venture, which secured a federal loan to build a factory, is scrapping its public offering in favor of a $175 million private placement through existing investors.
Solar company Solyndra has canceled its plan to raise money through an initial public offering on the stock market, opting to raise money from existing investors instead.
The Fremont, Calif.-based company on Friday filed a "registration withdrawal" request with the Securities and Exchange Commission, saying that it has changed course due to "adverse market conditions."
On Thursday, Solyndra said that it has raised $175 million from existing venture capital and private equity investors.
"Given the ongoing uncertainties in the public capital markets, we elected to pursue alternative funding from our existing investor base. This funding allows us to address strong customer demand by maintaining our aggressive growth plans," Solyndra CEO Chris Gronet said in a statement.
Solyndra, which hadin December of last year, is one of a few closely watched . The company, which President Obama visited in May, received a to build a solar manufacturing facility in northern California.
Gronet said that the company expects to start making solar collectors from its second factory in the fourth quarter.
Solyndra makes solar panels designed specifically for rapid installation on flat commercial rooftops. The collectors are long tubes made of thin-film solar cells. Earlier in June, the company announced that its largest installation in the U.S., a 704-kilowatt solar array in New Jersey, was installed in four weeks.
Despite the company's novel technology, industry watchers have. Building its next factory will increase the scale of its operations and bring down installed cost, Gronet said in a statement.
"Fab 2 can't come on line a minute too soon," he said. "We've now sold over 300,000 panels for deployment on commercial rooftop sites in a dozen countries. By the fourth quarter of 2011, we expect our annualized production to exceed 300MW, enabling economies of scale that will substantially reduce our manufacturing costs."