Will ethanol be able to keep getting funding?

Posted Mar 28th 2008 4:21PM by Jon Ogg
Filed under: Good news

Pacific Ethanol (NASDAQ: PEIX) has announced the completion of a $40 million equity investment by Lyles United, LLC. The investment included 2,051,282 shares of class B stock convertible to 6,153,846 shares of common stock and a warrant to purchase another 3,076,923 shares of common stock at $7.00 per share. The original Securities Purchase Agreement was dated March 18, 2008.

Normally we do not cover such small financings, nor do we cover financing being completed from part of a prior pact. Ethanol stocks in the U.S. have been in trouble, and Pacific Ethanol is no exception as shares have traded north of $17.00 over the last year.

If any company needed the funding in the ethanol sector, it was Pacific Ethanol. Gone are the days that Bill Gates owned a large portion of the company, and gone are the days that everyone believes that the current method of domestic ethanol will act to help the energy issues today if subsidies didn't exist.

Tags: alternativ energy, ethanol, inthenews, Lyles, Pacific Ethanol, PEIX

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Reader Comments (Page 1 of 1)

3-28-2008 @ 4:59PM

Seatonmanagement said...

I'm astonished that so many are "behind-the-curve," on this loser transaction. Worse, only politicians---who can pass such credits and subsidies---are the ones in favor of this sort of ethanol. Sheesh! Stop the Brazilian Tariff, accept that we can't "grow" our way out of this oil-addiction. ONLY thru the transitional fuel---natural gas---can we get toward electricity being the best method for huge numbers/percentage of automotive transport. (Grant you, an electric-powered-GIANT Peterbilt is a funny mental image, but natural gas would work for it.) Corn-based-ethanol is an obvious trick by various HUGE corn-growers, processors, political-contributing-corporations and such. Too much energy to get it out of the ground. Go solar for houses, go wind for power-generation, go nuclear where no wind nearby, allow the drilling off Florida's coast (nothing closer than 30 miles), and go natural gas in some forms for automotives, until hybridization can be completed; and, thence, the autos go toward plug-in-electrics with back-up-fuel-engines.