Rentech Gets Cash Infusion, Makes Strategic Investments

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Rentech Inc. said Wednesday that it agreed to sell $6.4 million worth of stock to some current institutional shareholders. The Los Angeles developer of synthetic fuels and chemicals technologies also announced an acquisition and investments in two other companies.

Rentech said it entered into a definitive agreement to sell nearly 11 million common shares at 58 cents each through a registered direct offering. Closing of the offering is expected to take place about June 29.

Rentech intends to use net proceeds for general corporate purposes, including paying some development costs at a renewable synthetic fuel and power project in Rialto.

In separate press releases, it was announced that Rentech completed two investments with biomass gasification companies.

Rentech said it signed a definitive agreement to acquire 100 percent of Atlanta-based SilvaGas Corp., which is developing commercial-scale biomass gasification technology, which converts urban waste feedstocks into synthetic gas.

Separately, ClearFuels Technology, a renewable biofuels company in Aiea, Hawaii, said that Rentech had acquired a 25 percent stake in it.

Rentech shares were down 1 cent, more than 1 percent, to 57 cents at midday on the NYSE Euronext.

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