Global Bioenergies gets equity financing line for up to EUR 9m
Testing biofuels. Author: Official U.S. Navy Page. License: Creative Commons, Attribution 2.0 Generic.
France's Global Bioenergies (EPA:ALGBE) said Monday it has secured a line of equity financing with French bank Societe Generale that at the company's current share price could raise EUR 9 million (USD 10.1m).
Societe Generale has committed to subscribing 250,000 new shares over the next 36 months, or 8.9% of the company's current capital. The issue price for each tranche will include a 5% discount to the average weighted price by volume of the preceding session. The bank does not plan to keep its holding in the company, which has the right to end the programme at any point.
Global Bioenergies said the financing will reinforce its financial situation for the medium term and give it the means to start up and operate its demo plant. The facility, located at the Leuna refinery in Germany, is currently under construction with completion due in July 2016.
The company said it had gross cash of EUR 14.1 million, not audited, at the end of September and EUR 6.7 million of subsidies to be received from the German and French governments.
Global Bioenergies's process converts renewable resources into isobutene, an important petrochemical building block that can be turned into fuels, plastics, organic glass and elastomers.