Valoe Corporation Inside Information 15 August 2019 at 15.20 (Finnish time)
Valoe Corporation ("Company") has signed an IBC (Interdigitated Back Contact) Cells Supply Agreement with a major US customer. The value of the Agreement for 2020 is approximately USD 12 million. The parties have agreed not to disclose the name of the customer for the time being.
Valoe intends to manufacture the bifacial and high-efficient IBC cells in the Lithuanian solar cell plant that is being modified for IBC cells production. On 19 February 2019 Valoe announced that it has agreed to acquire the solar cell production business of JCS SoliTek R&D ("Solitek") from Lithuanian Global BOD Group SIA ("BOD"). A part of the purchase price amounting to EUR 3.2 million has not yet been paid. Valoe intends to finance the payment of the remaining purchase price and the modernization of the plant with a share issue planned for September 2019. Valoe disclosed on 19 July 2019 that is has started the preparations of the share issue.
Provided that the share issue disclosed by Valoe will be successful the Cells Supply Agreement is estimated to turn the cashflow of the Lithuanian IBC Cell plant positive already during the plant’s first year of operation, in 2020.
In addition to customary terms of such contracts, either party may terminate the Agreement if the parties fail to agree on revised prices during two consecutive quarterly price negotiations, or if Valoe is not able to meet mutually agreed quality or delivery targets.
Under the Agreement, Valoe will provide the customer with IBC Cells manufactured in its plant in Lithuania from the beginning of 2020. The initial term of the Agreement lasts until the end of 2020 after which the parties will negotiate the terms of an extension period. Pursuant to the Agreement, the cell prices are based on the market prices and the parties have agreed on an initial price. Further, the parties have agreed on revising the prices quarterly and the prices will be raised or reduced depending on the development of the world market prices of the IBC cells.
Valoe estimates that the Agreement could lead to long-term and expanding cooperation as the customer relationship deepens.
Iikka Savisalo, CEO of Valoe Corporation:”This first IBC cells supply contract is significant for Valoe. The well-known and established customer chose Valoe as its partner before the Company's Lithuanian cell plant has been completed or even been transferred to Valoe’s ownership. This is a clear evidence of the customer’s trust in Valoe’s competence. It also shows that there is demand for IBC cells in the market. It is now particularly important to complete the modification of the Lithuanian plant as planned and get ready to convince our new partners of Valoe’s expertise and ability to collaborate.”
In Mikkeli 15 August 2019
Valoe Corporation
Board of Directors
For more information:
Iikka Savisalo, Valoe Corporation Tel. +358 40 521 6082, email: iikka.savisalo@valoe.com
Distribution:
NASDAQ OMX, Helsinki
Main media
www.valoe.com
Valoe Corporation specializes in the clean energy, especially in photovoltaic solar solutions. Valoe provides automated production technology for solar modules based on the company’s own technology; production lines for modules; solar modules and special components for solar modules including the IBC Cells. Valoe's head office is located in Mikkeli, Finland.