Friday, January 11, 2008

Hoku amends supply contract with Solarfun

Thursday, January 10, 2008

Hoku Scientific has amended its polysilicon supply contract with Solarfun Power Hong Kong Ltd.
A joint statement Thursday announced the amendment allowing Solarfun until Feb. 15 to process the required statutory approval for the issuance of a $44 million standby letter of credit. The standby letter originally was due Thursday.

The letter serves as a security for Solarfun's obligation to pay Hoku (Nasdaq: HOKU) $45 million in product prepayments for the period Sept. 30, 2008, through March 31, 2010.
In exchange for the extension, Solarfun has given Hoku a $1 million prepayment, in addition to the $10 million cash payment made in December.

Hoku signed in November a $306 million contract with Solarfun to deliver polysilicon.
Shares of Kapolei-based Hoku were up 2.2 percent to $11.35 in afternoon trading.

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