Dec 9, 2011 - US green fuel maker Pacific Ethanol Inc (NASDAQ:PEIX) today said it had agreed to sell USD 8 million (EUR 6m) in stock to a group of institutional investors.
The company plans to use USD 4.6 million of the proceeds to acquire an additional 7%-stake in New PE Holdco LLC, which owns the four Pacific Ethanol production facilities with a total capacity of 200 million gallons (757.1 litres) of ethanol. The deal will increase Pacific Ethanol's total stake in PE Holdco to 34%.
As part of the private placement, Pacific Ethanol will issue over 7.6 million of common shares priced at USD 1.05 apiece, a discount of some 19% to the closing price of the company's common stock on December 8. It will also distribute warrants to buy nearly 5 million common shares at USD 1.50 each.
The transaction is seen to close on December 13.
Lazard Capital Markets has been appointed as the sole placement agent for the offering.