Japanese solar manufacturer Toyo Solar has announced agreements for a $50 million registered direct offering to help fund its strategic expansion into U.S. cell manufacturing.
The transaction involves the issuance and sale of roughly 4.5 million ordinary shares and warrants to purchase up to an additional 4.5 million shares, for a price of $11 per share and associated warrant.
The warrants feature an exercise price of $13.20 per share and will expire in five years, but may be exercised immediately if the buyer so chooses.
The offering, which will be overseen by co-placement agents Roth Capital Partners and H.C. Wainwright & Co., is expected to close on or about June 25, 2026.
Toyo originally announced its intention to build a 1.5 GW solar cell facility in Texas in early June, co-located with its existing solar module assembly plant, which produces modules under the VSUN brand name acquired by the company in 2025. The module plant began commercial operation in October, 2025.
At the time, the company said it would use a mixture of internal cash flow, non-dilutive project financing, potential strategic partnerships, and selective equity financing to fund the facility’s construction.
In another recent financial announcement, the company said it had inked two major supply agreements with U.S. buyers who placed purchase orders for finished solar modules from the Texas plant totaling $185.6 million. The announcement did not name the buyers, instead referring to the parties as “two major U.S. renewable energy players.”
Toyo currently manufactures cells at two global plants, in Vietnam and Ethiopia. The latter is the subject of some controversy and a complaint filed by eight other U.S. solar manufacturing companies alleging that Toyo is circumventing tariffs on Chinese solar cells by using the Ethiopia facility to finish wafers from China and then shipping them to the U.S. for use in modules.
The company has denied the claims, with Toyo Chief Strategy Officer Rhone Resch saying that the complaint “fundamentally mischaracterizes our operations and business model and is riddled with misinformation.” Instead, the company asserts, all of the solar cells manufactured in its Ethiopia facility use polysilicon supplied exclusively from the United States and Malaysia, with wafers processed in non-China countries.
Even so, the company has continued to carry out its shift toward domestic cell production, in part as a hedge against trade litigation, but also to move to next-generation heterojunction (HJT) cell technology.
“Expanding into domestic cell manufacturing is the natural next step in our commitment to creating an integrated onshore solar supply chain from polysilicon to panels,” said Toyo CEO Takahiko Onozuka at the time of the cell facility announcement. “Co-locating 1.5 GW of HJT cell capacity at our Houston module site significantly optimizes our capital allocation and infrastructure spend.”
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