Hoku Materials Inc., a unit of Hoku Kapolei-based Hoku Scientific Inc., said today it has amended its supply contract with a unit of German solar power company Solar-Fabrik AG, extending the date by which Hoku must secure funding for its planned polysilicon plant.

Under terms of the amendment, either party may terminate the supply agreement if Hoku has not secured financing for the plant by May 31, 2008, a two-month extension from the previous deadline.

Hoku signed a nonbinding financing agreement with Merrill Lynch in December for up to $185 million for the construction and startup of its planned polysilicon plant. However, the company needs to secure $35 million in cash before receiving the Merrill funds.

Hoku raised additional capital when it completed a private placement of $25 million of its common stock to institutional investors and a subsidiary of Suntech Power Holdings Co. in February.

Hoku shares fell 2 cents to close at $9.38 on the Nasdaq Stock Market