31 August 2012 14:27 [Source: ICIS news]
HOUSTON (ICIS)--Cereplast has sealed a deal to raise up to $5m (€4m) in funds, enabling the US-based bioplastics producer to access liquidity, resume its production schedule and to buy raw materials, it said on Friday.
Under the deal, investor Ironridge Global will buy up to $5m of Cereplast convertible preferred stock.
Cereplast, which has been hit by accounts receivable problems with customers in Europe, also said it is making progress in selling its renewable resins to customers in ?xml:namespace>
"I want to thank the team at Ironridge for supporting Cereplast during this critical time,” CEO Frederic Scheer said.
“The transaction [with Ironridge] will provide us with the access to liquidity to resolve the receivables issues and monetise it, but also to re-start our production schedule and access the necessary raw materials,” Scheer said.
Scheer added that at a time of difficulty for the European economy it was important for Cereplast to continue to build a global company and to continue reaching out to emerging markets, such as
For the three months ended 30 June, Cereplast reported sales of only $191,000 - down from $7.6m in the same period a year ago - as the company focused sales mainly on existing US customers with low risk credit.
($1 = €0.80)
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