Solar3D to use Nasdaq Fund Raise for Acquisitions, CEO Says

(Bloomberg) — Solar3D Inc., a U.S. solar provider that

just acquired system installer MD Energy LLC, plans to continue

expanding by buying more companies.

Solar3D may seek additional capital for deals as soon as

next year, depending on the size of its 2015 acquisitions, Chief

Executive Officer Jim Nelson said Wednesday in an interview at

Bloomberg News headquarters in New York. Potential targets

include California- and Nevada-based solar-integration companies

with between $10 million and $30 million in annual sales.

“We can grow forever in those two markets, and when we

build critical mass, then look elsewhere,” Nelson said. “What

we want is a team that will come on board and continue to run

their company as a division for us.”

Solar3D is raising about $12.5 million, selling 3 million

shares at $4.15, the Santa Barbara, California-based company

said in a statement Wednesday. Each share comes with a warrant

to purchase another share at the same price.

Cowen & Co. arranged the offering. The company trades on

the Nasdaq under the symbol SLTD.

Solar3D fell 46 percent to $3.10 at the close in New York.

“Virtually all of the funds that we got in the offering

are going to be used for additional acquisitions,” Nelson said.

Solar3D had about $20 million in sales last year and is

expected to generate between $40 million and $45 million in 2015

as the company remains cash-flow positive, Nelson said. U.S.

solar demand this year may exceed 8.5 gigawatts, according to

data compiled by Bloomberg New Energy Finance.

“Being on Nasdaq gives you cache and credibility, and the

quality companies will see that and be interested in coming

aboard,” Nelson said.

(An earlier version of this story corrected the description

of MD Energy in the first paragraph.)

To contact the reporter on this story:

Justin Doom in New York at

jdoom1@bloomberg.net

To contact the editors responsible for this story:

Reed Landberg at

landberg@bloomberg.net

Jim Efstathiou Jr., Will Wade

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