NEW YORK (AP) -- Chinese solar maker ReneSola Ltd. on Wednesday said it will acquire Dynamic Green Energy Ltd.'s shares in exchange for 26.8 million of its own shares and $10 million in the form of a convertible promissory note.
Each American Depository Share represents two ordinary shares, which makes the number of ADSs exchanged 13.4 million. Based on ReneSola's closing price on Tuesday, the value of the deal, including the ADSs and the promissory note, is about $88.5 million.
Shares of Renesola rose 18 cents, or 3.1 percent, to $6.04 in afternoon trading.
Dynamic Green makes a range of solar products through its subsidiary Jiawei Solarchina Co. and other Chinese units.
As part of the deal, which was approved by the boards of both companies, Dynamic Green's founder Kongxian Ding can appoint two members to ReneSola's board of directors, one of whom must be an independent director.
Looking ahead, ReneSola cut its third-quarter revenue outlook to between $130 million and $140 million. In August the company has estimated third-quarter revenue ranging around $276.8 million to $294.1 million.
For the full year, ReneSola cut its revenue outlook to between $470 million and $500 million from an earlier estimate between $500 million and $550 million.
The company said it plans to offer 14.4 million American Depositary Shares, each representing two shares of the company. ReneSola said it intends to grant the underwriters an option to purchase up to an additional 2.2 million ADS. Net proceeds will go toward funding general corporate purposes.