IQE to raise capital, buy stake in solar cell firm

CALIFORNIA, USA: IQE Plc said it would raise about 10.5 million pounds ($16.7 million) through a share sale to invest in a solar cell maker, as the British semiconductor materials company expands in the solar cell market.

IQE would sell about 43.8 million shares at 24 pence per share and use a part of the proceeds, about $5 million, to buy a 9 percent stake in California-based Solar Junction Corp.

"This investment also brings us access to Solar Junction's well-funded R&D," IQE Chief Executive Drew Nelson said in a statement.

The company said about $2 million of the proceeds would be used to establish initial wafer production at IQE, along with certain quality control equipment.

IQE has also signed an exclusive wafer supply agreement with Solar Junction Corp.

IQE shares, which have gained 43 percent in the last three months, were trading down 2.8 percent at 25.75 pence at 1505 GMT on Wednesday on the London Stock Exchange.