TOYO Co. Ltd. shares slumped after the Japanese solar manufacturer launched a roughly $50 million equity raising to help fund a planned 1.5 gigawatt solar cell manufacturing facility in the Houston metropolitan area of Texas.

The shares were down 25% in early trading Wednesday to $9.69, narrowing the year-to-date advance on Nasdaq to 65%.

Toyo said it entered into definitive agreements for the sale of about 4.55 million its shares and warrants to buy up to 4.55 million shares in a direct offering at a combined purchase price of $11.00 a share and associated warrant. The warrants will have an exercise price of $13.20 a share, and will be exercisable immediately upon issuance and will expire five years after.

Earlier this month, Toyo said it planned to expand its U.S. manufacturing platform with a solar cell facility that will be located at an existing solar-module hub. The expansion represents a projected capital investment of about $357 million, and the company said engineering, facility design and procurement planning were already underway. Completion and initial pilot production are expected within 20 months, it said.

The closing of the offering is expected to occur on or about Thursday. Roth Capital Partners and H.C. Wainwright are acting as the exclusive co-placement agents for the offering.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

June 24, 2026 09:55 ET (13:55 GMT)

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