Cereplast Inc., a manufacturer of bio-based, sustainable plastics, said Monday that it closed a $2.23 million private placement to accredited and institutional investors.

The Hawthorne company said the money will be used to expand its algae-to-plastics development efforts, strengthen the company’s balance sheet and otherwise carry out its business plan. The company’s products are designed to be a replacement for current petroleum-based plastics used for single-use disposables and packaging.

Cereplast, which had a $34 million market cap and 343 million shares outstanding prior to the announcement, said 44.6 million shares were sold at 5 cents a share.

“We are very pleased to have been able to complete a placement in the current economic environment and once again to continue to receive the support from our institutional investors,” Chief Executive Frederic Scheer said in a statement.

Shares on Monday were unchanged at 10 cents per share on the Over-the-Counter Bulletin Board.