Rentech Inc. said Wednesday that it signed a deal to sell 11.1 million shares of its common stock to institutional investors, which is expected to raise about $20 million in gross proceeds.

The $1.80 per share price is a 10 percent discount to the Los Angeles synthetic fuel developer’s closing stock price on Tuesday. The company has 193 million shares outstanding.

Net proceeds will fund part of the development costs of the company’s new renewable synthetic fuels and power project in Rialto and for other general corporate purposes. The sale is expected to close on Monday.

The company’s share price has more than doubled in the last several weeks after announcing military and airline-related contracts for its synthetic diesel fuel, which is made from green waste and natural gas. Its current cash flow comes from its nitrogen fertilizer business.

However, Rentech’s shares were down 19 cents, or 9 percent, to $1.83 in midday trading Wednesday on the New York Alternet.