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Tuesday, Sep 27, 2022
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Cereplast Makes Private Stock Placement

Cereplast Inc. on Thursday said it raised $12 million through a private placement of stock with several institutional investors.

The El Segundo maker of bio-based plastics said that it expects net proceeds of $11 million, which it will use to help fill the company’s growing order pipeline from new distribution agreements made earlier this month with companies in Italy, Romania, Poland and Slovenia. Cereplast signed its first European deal in August with an Italian company that is making carryout bags and compostable trash bags with bioplastic resins.

“Demand for bio-plastic resin in Europe continues to soar, and the explosive growth we are experiencing in the region is reflected in the number of new contracts we have entered into there in 2011,” Chief Executive Frederic Scheer said in a statement. Cereplast makes its plastic resin using 100 percent renewable raw materials, such as corn, wheat and potato starches.

The company agreed to sell 2.6 million units, each consisting of a share of common stock and warrants to purchase 0.25 of a share at a price of $4.75 per unit. The warrants are exercisable when the share price reaches $6.35.

The placement is expected to close Feb. 1. Shares closed down 47 cents, or 8.5 percent, to $5.04 on the Nasdaq.

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