Fuel cell parts maker Hoku Scientific posted a wider-than-expected fourth-quarter loss and said it ended an agreement with Merrill Lynch to borrow up to $185 million, sending its shares down as much as 9 percent.
Hoku had signed an agreement with Merrill Lynch in December last year to raise cash for setting up a polysilicon plant in Pocatello, according to Reuters.
The company expects the plant to cost about $390 million and said it filed with U.S. regulators to raise as much as $110 million through an offering of common and preferred stock, and warrants.
Hoku, which plans to step up efforts to expand its polysilicon manufacturing and PV systems installation service business, also said it expects to continue to incur losses for the foreseeable future as it estimates costs to increase significantly.
For the latest quarter, the company reported a net loss of $2.1 million, or 12 cents a share, compared with a net loss of $2.1 million, or 13 cents a share, in the year-ago period.
Excluding items, Hoku Scientific reported a loss of 11 cents a share.
Service and license revenue fell 45 percent to $621,000.
Analysts, on average, were expecting a loss of 5 cents a share,
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