ReneSola Ltd. (NYSE: SOL) announced Monday that it will sell 1.54 million of its American depositary shares at $3.25 apiece in a direct offering.
The price represents a 25% discount from ReneSola's Friday close of $4.33 per share.
The news sent ReneSola's shares 18% lower to $3.39 per ADS. After-hours, however, its shares gained nearly 2%.
H.C. Wainwright & Co. is the exclusive placement agent while Roth Capital Partners is the financial advisor. The direct offering is expected to close on or about October 14.
The Chinese solar project developer said it expects to use the funds for expanding the new solar project pipeline and general working capital need.
Last month, the company and Germany-based project developer, Vodasun, announced to co-develop and market ready-to-build (RTB) ground-mounted solar projects in Germany.
Yumin Liu, the chief executive officer of ReneSola was happy about the cooperation, “We believe this is a meaningful step for us to achieve our global pipeline growth target in the next several quarters and beyond."