Pacific Ethanol reports that they have entered
into a “definitive purchase agreement with a group of institutional investors to raise $8.0 million in a private placement transaction.” In addition, the company has signed purchase agreements to acquire an additional 7% interest in the Pacific Ethanol production facilities, according to a company news release.
Of the net proceeds from the financing, $4.6 million will be used for the purchase of the additional 7% ownership interest in New PE Holdco LLC, the owner of the four Pacific Ethanol production facilities with a combined annual production capacity of 200 million gallons. Upon closing, the company’s total ownership interest will increase to 34%. On October 6, 2010, the company paid $23.3 million in cash for its initial 20% ownership interest, and on November 29, 2011, the company purchased an additional 7% ownership interest for $4.5 million.
The company lost those four plants in a bankruptcy case last year.