$50 million EB-5 Phase II funding launched by CEO touring six countries in Asia and the Middle East
EB-5 Financing is Repaying 14% High Cost Bridge Loan with 3% Low Cost, Long Term Funding
CUPERTINO, CA – October 10, 2016 – Aemetis, Inc. (NASDAQ: AMTX), an advanced fuels and renewable chemicals company, announced that the $36 million EB-5 Phase I funding has been followed by the launch of a $50 million EB-5 Phase II funding to repay the existing 14% interest rate bridge loan with 3% interest rate, long term EB-5 funding.
Under the EB-5 Phase I funding, Aemetis offered subordinated notes in the amount of $500,000 per note to refinance the high interest rate bridge loan for the existing Keyes ethanol plant, and raised $36 million from 72 foreign investors. To date, $25 million of this amount has been released from the escrow account to the company and used to reduce a higher cost bridge loan held by our senior lender.
With an EB-5 project track record established, Aemetis recently commenced a $50 million Phase II funding with two Asian marketing tours by Aemetis Chairman and CEO Eric McAfee in July and August. Mr. McAfee officially launched the EB-5 Phase II funding in September 2016 with a tour of six countries including China, Vietnam, Taiwan, Singapore, Dubai and Abu Dhabi.
“We expect the proceeds from the $50 million EB-5 Phase II funding should be received into escrow during 2016,” Mr. McAfee stated. “Under the terms of the EB-5 Phase II offering, funding will be released from the escrow account to Aemetis within about a month after the investor deposits the funds, a significant decrease from up to the 18 months of escrow required by the earlier $36 million EB-5 Phase I program.”
Aemetis’ financing plan is to repay its high cost senior bridge loan with low cost EB-5 funding and funds from operations. This repayment of the senior bridge loan is expected to result in significant interest rate savings. Aemetis estimates that with about 20 million Aemetis shares outstanding, an interest rate reduction from 14% to 3% and the elimination of loan fees for the $68.5 million senior bridge loan would result in an annual interest and fee savings of more than $12 million per year (an increase of about $0.60 of earnings per share).
About Aemetis, Inc
Headquartered in Cupertino, California, Aemetis is an advanced fuels and renewable chemicals company founded in 2006. Aemetis owns and operates a 60 million gallon per year ethanol and 420,000 ton animal feed plant in California. Aemetis also owns and operates a 50 million gallon capacity renewable chemicals and advanced fuels production facility on the East Coast of India producing high quality, distilled biodiesel and refined glycerin for customers in Europe and Asia. Aemetis operates a research and development laboratory at the Maryland Biotech Center, and holds granted patents on technology for the production of renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.
Safe Harbor Statement
This news release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements regarding our business plans, growth opportunities, our ability to meet our funding goals under the EB-5 Phase II funding, our expectations regarding the timing of the receipt of funds from escrow and our expected cost savings from repayment of our senior bridge loan. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “targets,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, completion of the terms of the agreement, completion of the EB-5 financing transactions, financial market risks, counter-party risks, risks associated with changes to government policy or regulation, and other risks detailed in our reports filed or to be filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2015 and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.