1 December 2022
Midsummer signs four new LOIs for delivery of extra 224MW of solar panels
Midsummer AB of Järfälla, near Stockholm, Sweden – a provider of turnkey production lines as well as flexible, lightweight copper indium gallium diselenide (CIGS) thin-film solar panels for building-integrated photovoltaics (BIPV) – has signed new letters of intent (LOI) with four Swedish and international roof material producers, house manufacturers and solar cell installers for the pre-sale of 224MW of solar panels.
Previously, on 5 November, Midsummer announced the signing of LOIs with six Swedish and international industry players for a total of 107MW of solar panels. This brings the number of offtake agreements to ten in November for a collective 331MW of solar panels.
Together with previously announced deals with three Italian roof and building companies for 15MW per year for five years (totaling 75MW), the cumulative number of offtake agreements is 13, with a combined volume of more than 400MW of solar panels.
“Many large industry players around Europe are lining up for our products as they see a big market for our discreet and sustainable thin-film panels,” says CEO Sven Lindström. “It is our defined strategy to enter into these offtake agreements to ensure sale of our products parallel with us scaling up our production capacity.”
The signed LOIs equate to 406MW of solar panels to be supplied in the coming 3-6 years, compared with the firm’s annual production capacity of 2MW at the existing Swedish factory and 50MW at the Italian factory in Bari (due to enter production in 2023).
Midsummer also aims to establish a new factory in Järfälla, with an annual production capacity of 20MW initially and 200MW eventually. The long-term goal is an annual production capacity of at least 1000MW by 2030, which would require several new mega-factories around Europe.
Midsummer to raise further capital through convertible bond issue
Midsummer’s board recently appointed DNB Markets as sole financial advisor to explore possibilities to raise further capital through an issue of convertible bonds, in fourth-quarter 2022 at the earliest (subject to shareholder approval). Proceeds would be used to redeem the firm’s outstanding SEK200m senior unsecured green bonds maturing in April 2023, as well as to further expand production capacity and growth.
Midsummer also previously decided to review its capital structure and to arrange industrial and/or strategic investor meetings regarding a contemplated new share issue during Q4/2022, for the purpose of expanding its production capacity and working capital for its facility in Järfälla