Hoku says $5M infusion, shipment delays will help

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by Associated Press

KTVB.COM

Posted on August 15, 2009 at 4:34 PM

Updated Tuesday, Oct 13 at 4:52 PM

BOISE -- Hoku Scientific, Inc., which aims to make polysilicon panels for solar energy at a plant in Pocatello, Idaho, has received $5 million from a Chinese customer, helping stave off financial woes that could delay construction and have threatened to put the company out of business.

Hoku Chief Executive Officer Dustin Shindo said the early payment from Tianwei New Energy Holdings Co. will bolster cash flow as other customers aim to delay payments.

As part of this pact, Hawaii-based Hoku was forced to cut its prices by 8 percent, meaning the 10-year value of its contracts with Tianwei slipped to $468 million.

Still, Shindo said more cash now -- as well as the delay of some early shipments -- will be helpful as Hoku seeks more money to finish the Pocatello plant.

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