REC Silicon shares slump after failed product test

Rec Silicon ASA

18/12/2024 10:35

** Shares in REC Silicon  RECSI.OL  plunge 60% after an
unsuccessful result of product qualification tests put a
contract at risk and could lead to financial restructuring
    ** The company says it is in talks with the customer on the
feasibility of another test, and is reviewing multiple strategic
options
     ** If the tests do not happen again or continue to fail,
the off-take agreement with customer Q Cells might be completely
terminated, SpareBank1 Markets analyst Jonas Fremming says
    ** "REC Silicon must do a full balance sheet restructuring,
where a new and potentially successful qualification test is
likely necessary for new investors," Fremming says
     ** He estimates that REC Silicon has an interest-bearing
debt of around $430 million and virtually no cash reserves
    ** "Now, a full refinancing appears inevitable. However,
until the purity issue is resolved, the multiple layers of risk
make the company uninvestable," Arctic Securities analysts say
     ** The REC Silicon shares are on track for their worst day
ever if the losses hold

 (Reporting by Agnieszka Olenska)
 ((Agnieszka.Olenska@thomsonreuters.com;))