SAN FRANCISCO (Thomson Financial) - Shares of Pacific Ethanol Inc. tumbled
Friday after the company announced $34.3 million in new financing.
The Sacramento, Calif.-based ethanol company said it sold 294,870 shares of
its Series B cumulative convertible preferred stock to its Chief Executive Neil
Koehler and Chairman Bill Jones, as well as other company insiders.
The shares are initially convertible into an aggregate of 884,610 shares of
the company's common stock based on a 3-for-1 conversion ratio, and warrants to
acquire an aggregate of 442,305 shares of the company's common stock at an
exercise price of $7 per share, for a purchase price of $5.75 million, the
company said.
Pacific Ethanol said it also entered into agreements with institutional
investors to raise $28.5 million in gross proceeds in a direct offering through
the sale of shares of its common stock and warrants. The offering is expected to
close by May 29.
Shares of Pacific Ethanol were down 75 cents, or about 14.7%, at $4.41.
Katherine Hunt
kh/vj
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