Hoku Scientific Announces Progress on Financing Polysilicon Plant

KAPOLEI, HI -- Hoku Scientific, Inc. (NASDAQ: HOKU) announced that it has signed a non-binding term sheet with Merrill Lynch for Hoku Materials, Inc., its wholly owned subsidiary, to borrow approximately up to $185 million for the construction, procurement and start-up of its planned polysilicon production plant in Pocatello, Idaho. The closing of the loan and the availability of the funds to Hoku Materials is subject to several conditions, including the completion by Merrill Lynch of its due diligence, the negotiation and execution of definitive loan and collateral documents, and the receipt of third-party consents. In addition, prior to receiving any of the loan proceeds, Hoku Scientific will be required to provide Hoku Materials with approximately $35 million in cash for use in the construction of the planned polysilicon plant. To meet this and other capital requirements, Hoku Scientific will be required to secure additional financing. Link. Chart.