Sunpower Group said on Friday that it issued 32.28 million warrants to Blue Starry Energy, which is indirectly owned by DCP Capital Partners, and 5.88 million warrants to Glory Sky Vision, which is indirectly owned by CDH China Management.
Each warrant gives the right to subscirbe for one warrant share with an exercise price of S$0.70 each if it’s exercised on or before the end of 2019, or S$0.80 if its exercised during 2020, it said in a filing to SGX after the market close on Friday.
The warrants will expire on 31 December 2020 and won’t be listed on any stock exchanges, Sunpower said.
In an SGX filing in May, Sunpower said that the warrants, if fully exercised, will provide up to US$30 million for its green investments (GI) portfolio expansion at a higher valuation than its convertible bonds.
“By securing this capital to expand its GI portfolio, the Group will be well-positioned to build and acquire scarce and attractive assets immediately, and if successful, such GI will be EPS accretive and value accretive,” Sunpower said in the May filing. “This will allow the group will continue to leverage its unique competitive edge to further cement its market leadership and first mover advantage in the GI business,” May filing said.
If all of the convertible bonds are issued and converted into shares and all the warrants are exercised, the aggregate number of shares allotted to the two investors would be 214.50 million, or 16.19 percent of the total issued shares of the company on a fully diluted basis, it said in the May filing.
DCP and CDH are China-based private-equity firms, and they are expected to “value-add” for Sunpower via resources, operational expertise and market knowledge, it said in the May filing. Blue Starry Energy and Glory Sky Vision are both investment holding companies.
Sunpower’s shares ended Friday down 1.47 percent at S$0.34.