SUNation Energy (SUNE) stock surged nearly 26% in premarket trading Wednesday, hitting $2.98, after its pending merger partner Suniva announced it closed an $835 million capital raise.
The money will fund a major expansion of U.S. solar cell manufacturing, with a new facility planned for South Carolina.
Suniva raised the capital through a mix of debt and equity. Backers include Lion Point Capital, Goldman Sachs Alternatives, I Squared Capital, JBA Asset Management, Electron Capital Partners, Orion Infrastructure Capital, and Rubric Capital Management.
The financing structure included senior secured credit facilities, a second lien credit facility, and direct equity investments.
The new facility is being built in Laurens County, South Carolina. It will have a capacity of 4.5 GW of high-efficiency monocrystalline silicon solar cells.
The project carries an estimated cost of around $600 million. The shell of the 621,468-square-foot building is already complete.
Suniva expects to finish construction in late 2027 and reach full production in 2028. The plant is also expected to create 564 advanced manufacturing jobs.
The South Carolina expansion will more than quadruple Suniva’s current manufacturing capacity.
Suniva currently runs a 1 GW solar cell facility in Norcross, Georgia. That plant is fully operational and producing monocrystalline silicon solar cells.
Once the South Carolina plant is online, Suniva’s total U.S. solar cell capacity will reach 5.5 GW.
The capital raise comes as Suniva moves forward with a reverse merger involving SUNation Energy.
Suniva announced the definitive reverse merger agreement back on June 8. Under the deal, Suniva will merge with a wholly owned subsidiary of SUNation.
The combined company is expected to operate under the Suniva name. It will retain SUNation’s current Nasdaq Capital Market listing under the ticker SUNE.
Suniva CEO Tony Etnyre said the added capacity is designed to meet rising demand for domestically produced solar cells. He also pointed to long-term offtake agreements already in place for most of the planned production.
Suniva said it has an established domestic supply chain to support the expansion, which it describes as unique among U.S. solar cell manufacturers.
SUNE stock was up 25.74% in premarket trading Wednesday at $2.98, according to Benzinga Pro data.
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