LDK Solar Co. Ltd. (NYSE: LDK) is seeing a lot of action this pre-market Friday.Â At 8:43 AM EST we have shares trading down another 7.4% at $7.27 on over 1 million shares.Â This one already fell from $9.20 on Wednesday’s close as a securities sale yesterday sent shares south on a whopping 17.49 million shares.Â The stock had been indicated down 10% earlier, but the one phrase that kept coming to mind yesterday from its own news dissemination was awful: the “going concern” disclosure.
The company’s fresh filing states:Â Offering 16,520,000 ADSs instead of 18,900,000 ADSs in this offering; net proceeds from this offering are expected to be approximately $108.1 million and LDK’s total capitalization and the dilution effect will change accordingly. Net proceeds are for the following:
- approximately $90.0 million of the net proceeds to pay down short-term debt at interest rates between 5.00% and 6.00% per year;
- to fund polysilicon production plant and the expansion of solar module business and for general corporate purposes.
JON C. OGG