New Generation Biofuels Offers $1.5M in Stock, Warrants

Dec 14 2009 | 1:46am ET

Maryland-based renewable fuels provider New Generation Biofuels Holdings, Inc. has entered into definitive subscription agreements with investors for the sale of 1,926,250 shares of its common stock and warrants to purchase 577,875 shares of its common stock.

New Generation is offering shares of its common stock and warrants in units consisting of one share of common stock and a warrant to purchase 0.30 shares of common stock at a price of $0.80 per unit. The warrants have a term of five years, will not be exercisable for six months from date of issuance and have an exercise price of $0.90 per share. The units will not be issued or certificated and neither the units nor the warrants will trade on any exchange or be listed for quotation on any market.

The gross proceeds of the offering are expected to be approximately $1.54 million and net proceeds, after deducting the placement agent’s fee and estimated offering expenses payable by NGBF, are expected to be approximately $1.30 million. Jesup & Lamont Securities Corporation acted as the placement agent in this transaction.

The Company expects to use proceeds from the offering for general corporate purposes, including working capital and capital expenditures such as the costs associated with the expansion of its production facility in Baltimore, Maryland.

The offering is expected to close on or about December 16, 2009, subject to the satisfaction of customary closing conditions.

New Generation Biofuels holds an exclusive license for North America, Central America and the Caribbean to commercialize proprietary technology to manufacture alternative biofuels from plant oils and animal fats that it markets as a new class of biofuel for power generation, commercial and industrial heating and marine use.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

Business Insider has been reporting on the unusual trading activity of a mystery trader who placed a profitable short equity bet to the tune of $21 million on the Aug. 10 move in the CBOE Volatility Index (VIX).