On June 25, 2025, Ascent Solar (NASDAQ: ASTI) filed a Form S-1 concerning the sale of new stock and warrants to raise capital again. The high-dollar revenues ASTI’s management forecasted from supplying solar to satellites never materialized (as we reported here). And a business with recurring zero and near-zero quarterly revenue is not sustainable without cash.
According to the SEC filing, up to 6,634,617 shares of common stock are issuable upon exercise of all the contemplated warrants. The sales price and proceeds are not finalized, but assuming $1 per share, ASTI stands to raise approximately $3.2 million. (The warrants with an exercise price of $1.56/share, barring some unexpected miracle, will likely never execute.) ASTI shares traded down 26% on the news.
ASTI reported 1,709,984 shares outstanding as of March 31, 2025. Assuming the warrants all execute, this results in nearly five to one dilution for existing shareholders. Discounting warrant execution, should ASTI sell the announced 3,205,129 shares, shareholders still face nearly three to one dilution.
H.C. Wainwright & Co. will act as placement agent for this stock offering. They stand to earn 8% plus up to $130,950 in additional fees. Although the offering price is not disclosed, assuming $1.00/share, H.C. Wainwright could pocket about $380,000 from the deal. Thus, the cost of ASTI raising this capital is about 12%. As has historically been the case with Ascent Solar, the bankers seem to always be the winners, not shareholders.
ASTI CEO Paul Warley also wins from this deal. Without cash, ASTI can’t afford to pay his salary. He received $515,800 in salary and bonus last year (not counting stock options). Raising $3.2 million will go a long way towards ensure Paul Warley gets paid by ASTI again this year.
For a company with -$8.5 million in operating income last year and $2.5 million in cash as of the end of last year, $3.2 million may not even be enough to fund ASTI for a full year.