ReneSola Gets $11 Million Backing From North Carolina's Shah Capital
ReneSola Ltd. (NYSE: SOL) announced it has signed a deal for $11 million in exchange for its shares at a discounted price with existing shareholder Shah Capital Opportunity Fund LP.
The Shanghai-based company said in a statement on Wednesday after markets closed that it will issue 100 million ordinary shares to Shah Capital, priced at 11 cents each, or an equivalent of $1.10 per American depositary share. That represents a discount of 29% from ReneSola's closing price on Wednesday.
The news sent ReneSola's stock down more than 3% on Thursday, to $1.50 per ADS.
ReneSola also announced on Wednesday that it has regained compliance with the minimum average closing price criteria required by the New York Stock Exchange. Early in September, the company received a notice of non-compliance after its ADSs were trading below the $1 per share standard requirement for 30 consecutive days.
ReneSola said it will use the proceeds from Shah Capital, based in Raleigh, North Carolina, to boost its global solar development projects.
Shah Capital will appoint two new representatives to ReneSola's board of directors, Kaiheng Feng and Ke Chen.
"My goal is to help guide ReneSola's ongoing business transformation and intend to work with all the fellow directors to drive more bottom line driven reacceleration of growth," Chen said in a statement.
ReneSola first announced the expected investment from Shah Capital in mid-September.