Pacific Ethanol, Inc. (Nasdaq: PEIX), announced it has entered into a definitive purchase agreement with a group of institutional investors to sell 5,496,583 shares of common stock at a price of $26.38 per share for gross proceeds of $145 million.
The net proceeds of approximately $138 million (not including any proceeds that may be received from the exercise of the warrants) are expected to provide the Company with sufficient cash to both accelerate its stated goal of completing five ethanol production facilities totaling 220 million gallons per year by the end of 2008 and to expand its plans to complete additional ethanol production facilities, increasing total nameplate capacity to 420 million gallons per year by the end of 2010. Additionally, a portion of the net proceeds will be earmarked for strategic investments in corn and cellulose process technologies.
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