Xethanol (XTHN.OB) raises upto $46 Million in Equity Capital
Xethanol Corporation (OTCBB: XTHN.OB) announced that it has signed definitive agreements for up to $46 million in two separate equity financing transactions. Under the terms of the first transaction, Xethanol will initially receive approximately $30 million from the issuance of shares of its common stock to institutional and private investors. Additionally, over the next three years, Xethanol could receive up to an additional $10.6 million from the exercise of warrants issued to these investors. As part of this transaction, the company has agreed to file a resale registration statement on Form SB-2 with the Securities and Exchange Commission within 30 days following the closing for the purpose of registering for resale the shares of common stock sold in the financing.
Under the terms of the second transaction, Xethanol will initially receive $4 million from the issuance of shares of its common stock to Goldman Sachs & Co. Additionally, over the next three years, Xethanol could receive up to an additional $1.4 million from the exercise of warrants issued to Goldman Sachs. More details and terms of the transaction will be made available in the Company’s upcoming filing of form 8-K with the Securities and Exchange Commission.
Xethanol is an intriguing investment even though they are an OTC stock. They have an operational plant in Iowa that currenlty produces Ethanol and uses Biomass to Ethanol technology to produce Ethanol. However, with an OTC stock such as this its hard to find a lot of information and which is why I sent them the following questions a few weeks ago. They keep telling me that they will answer the questions soon since Christopher d?Arnaud-Taylor (CEO) has been busy these last few weeks travelling and such. I do have Christophers phone number and might have to call him if I don’t hear back soon. The financing deal is a great step for this company and the stock action didn’t dissapoint yesterday either. They didn’t have enough money to survive before this equity financing deal so this should keep them going for a while.
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