ROSEVILLE, CA—SPI Solar, a vertically-integrated photovoltaic solar developer, is selling $43.8 million of common stock with plans for a partnership that will expand its business in China.

The company intends to use the net proceeds from the sale of the shares for expansion of SPI's global PV project activities, continued investment in ramping its YES! Solar solution for the residential and small business segments and working capital purposes. SPI Solar will also use a portion of the net proceeds to make a strategic investment in Hong Kong's Guocang Group Limited.

SPI announced Tuesday that it had entered into a definitive purchase agreement for the sale of the stock in private placements. The lead investor in this private placement round is a subsidiary of Evergrande Real Estate Group, one of the largest real estate developers in China and whose shares are listed on the Hong Kong Stock Exchange. SPI anticipates that the strategic and financial support provided by Evergrande, along with another investor in the private placement, will enhance the company's position in the fast-growing solar market in China.