Dallas, Texas 10/16/2013 (Financialstrend) – China has set itself a stiff target in terms of leveraging renewable and clean energy to drive its growth and reduce its dependence on fossil fuels. The government push for leveraging solar power has led a host of companies which are well positioned to manufacture solar panels to thrive and prosper. ReneSola Ltd. (ADR) (NYSE:SOL) is one such semi conductor and solar panel manufacturer.
On September 17 ReneSola Ltd. (ADR) (NYSE:SOL) announced that it had successfully closed $70 million securities offering. The net proceeds the solar panel manufacturing firm has raised from the security offering has been ear marked for optimizing the production mechanism for manufacturing polysilicon.
CEO of ReneSola’s Mr Xianshou Li has been quoted as saying that “The proceeds will also be used for the optimization of ReneSola’s polysilicon plant, which will help us strengthen our supply source and control our raw material cost, thus putting us in a more advantageous position overall as we follow through on our longer-term business development strategy.”
ReneSola is into the designing and manufacture of PV products. The solar tech provider has developed proprietary polysilicon compound which it leverages to produce high quality solar panels.
Backed by the huge demand for solar power due to Chinese government initiative to provide tax rebates on solar solution sales, ReneSola has been attempting to increase its production capacity. The stock has appreciated by close to 90% over the past 90 days backed by strong growth in sales. During its 2Q, the firm had posted a 62% increase in sales over on a year on year compare. Investors who had bought shares in this company 12 months back would be celebrating since their investment has appreciated by close to 293% over the same period. When trading resumed on October 15, the stock was trading at $5.51 per share.