Okay kids, we (You, me, the U.S. Govvy) just gave these guys a $535 Mil. loan guarantee.
One of their investors is an outfit called Goldman Sachs which advertises that they bring companies public.
What is going on?
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.Now the company is issuing an additional $175 mil. in promissory notes. This just doesn't smell right.
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....MORE
From PE Hub:
Solyndra Inc., a Fremont, Calif.-based provider of solar energy systems for commercial rooftops, has canceled its proposed $300 million IPO. In a filing with the SEC, Solyndra cited “adverse market conditions.”The company had filed for the offering last December, with Goldman Sachs and Morgan Stanley serving as co-lead underwriters.Previously:
Solyndra has raised over $500 million in VC funding, from firms like Argonaut Ventures (35.74% ownership stake), U.S. Venture Partners (10.19%), RockPort Capital Partners (7.5%), CMEA Ventures (6.81%) and Redpoint Ventures (5.94%).
Last March, Solyndra got a $535 million loan guarantee from the Department of Energy to build a second solar panel fabrication plant in California — the first cleantech company to get such a loan. It also applied for a second loan from the DOE of $469 million, according to its S-1, and estimates that the next phase of the fab will cost $642 million. www.solyndra.com
"The Daily Start-Up: Auditor Questions Solyndra’s Viability" (Going Concern Warning) GS; FSLR
Was Solyndra the Reason Goldman Sachs Threw First Solar Under the Bus? (FSLR; GS; SPWRA)
What is Solyndra’s Cost Per Watt? (SOLY; FSLR; TSL)