Rochester Hills, Mich., Feb. 16, 2005 — Energy Conversion Devices, Inc. (ECD Ovonics) (NASDAQ:ENER) announced today that it has completed the $87.8 million private placement of its common stock previously announced on February 10, 2005. ECD Ovonics sold 5,090,000 shares of common stock at a price of $17.25 per share to 65 institutional investors. A registration statement will be filed with the Securities and Exchange Commission (SEC) within 10 days for the resale of the common stock. The shares may not be resold until the registration statement is declared effective by the SEC.
ECD Ovonics plans to use the net proceeds of this transaction to double the manufacturing capacity of United Solar Ovonic’s triple-junction, thin-film amorphous silicon photovoltaic products; to exercise the option to purchase for $4.55 per share the 4,376,633 shares of ECD Ovonics’ common stock held by TRMI Holdings, Inc., an affiliate of ChevronTexaco Corporation; and for general corporate purposes, including research and development investments.
After ECD Ovonics exercises the above-mentioned option, the net proceeds from this private placement will be approximately $67.9 million (prior to the deduction of fees and expenses) and the post-exercise number of shares outstanding will have increased by 713,367 shares, or 2.8%.
