Monday June 12, 8:26 am ET
DALLAS, June 12 /PRNewswire/ -- Panda Ethanol Inc. today announced it has engaged in two transactions that will facilitate the company's plans to build a portfolio of ethanol refineries.
The company has entered into a merger agreement with a publicly-held corporation which trades over the counter. The merger is expected to become effective this summer, subject to the satisfaction of certain requirements, and the combined entity will operate under the name of Panda Ethanol Inc.
The company has also closed a private placement of approximately 14.9 million shares of its common stock for a total gross proceeds of $90 million. The proceeds from the offering will be used to help finance the ongoing construction and operation of Panda's 100 million gallon, manure-fueled ethanol project in Hereford, Texas.
Todd Carter, chief executive officer and president of Panda Ethanol, stated, "We are very excited about these transactions and the opportunity they give our company to continue its development of ethanol production. One of Panda Ethanol's main goals is to help our country become energy efficient and to reduce its dependence on foreign oil."
The common stock offered in the private placement was not registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from the registration requirements. Energy Capital Solutions LP acted as the sole placement agent for the offering.
About Panda Ethanol
Panda Ethanol is headquartered in Dallas, Texas. The company is currently developing fuel ethanol refineries, biomass facilities and bio-diesel plants in the United States. Following the private placement, the largest single shareholder will be Panda Energy International Inc., a privately-held company which has built over 9,000 MW of electric generation capacity at a cost of $5 billion. In 2005, Newsweek magazine named Panda one of the most eco-friendly companies in America. Additional information on Panda Energy and Panda Ethanol can be found at www.pandaenergy.com <BLOCKED:: http://www.pandaenergy.com/ > .
This notice shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.
Safe-Harbor Statement -- Except for the historical information contained herein, the matters set forth in this news release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Panda Ethanol intends that all such statements be subject to the "safe-harbor" provisions of those Acts. Many important risks, factors and conditions may cause Panda Ethanol's actual results to differ materially from those discussed in any such forward-looking statement. These risks include, but are not limited to, the ability to complete construction of its ethanol plants, future prices for ethanol relative to the prices of gasoline, interest rates, product demand, transportation requirements and costs and the ability of Panda Ethanol to obtain additional capital to finance its initiatives. The historical results achieved by Panda Ethanol are not necessarily indicative of its future prospects. In addition, new factors, risks and uncertainties may emerge from time to time. Panda Ethanol undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Panda Ethanol Inc.
back to news |
