Pacific Ethanol, Inc. (PEIX) announced the closing of its previously announced underwritten public offering of 28.0 million units at a public offering price of $0.43 per unit, for gross offering proceeds of $12.0 million.

The company said that each unit consists of one share of common stock, one warrant to purchase one share of common stock and one warrant to purchase 1/2 of a share of common stock. The shares of common stock and warrants are immediately separable and were issued separately.

The warrants are exercisable immediately. The Series I Warrants have a 5-year term and an exercise price of $0.63 per share and the Series II Warrants have an 18-month term and an exercise price of $0.53 per share, Pacific Ethanol said.

The company stated that it intends to use about $10.0 million of the net proceeds from the offering together with senior unsecured notes in the original principal amount of approximately $10.0 million, to purchase 33% of the outstanding ownership interests in New PE Holdco LLC, after which it will hold a 67.25% ownership interest in New PE Holdco LLC.

The company intends to use the remainder of the net proceeds from the offering for general corporate purposes, which may include, among other things, working capital requirements, capital expenditures, acquisitions, and the repayment of outstanding indebtedness.

source: nasdaq


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