$36 million offering under USCIS program that attracts foreign investments for local job creation
CUPERTINO, CA – September 30, 2014 – Aemetis, Inc. (NASDAQ: AMTX) today announced $19 million in EB-5 program funds have been received into escrow from foreign investors, representing more than 50% of the maximum of $36 million to be raised in the offering. A total of 47 qualified investors at $500,000 per investor have subscribed for $23.5 million in the offering.
Established in 1990, the EB-5 Program under the US Citizenship & Immigration Service (USCIS) is designed to generate new jobs in high unemployment areas of the United States by allowing qualified foreign nationals seeking a green card to study or work in the US by investing in an approved project. The California Energy Investment Center (CEIC), an approved USCIS regional center, is reviewing applications from additional investors and a waiting list to complete the $36 million of low-cost financing to Aemetis.
The Aemetis 60 million gallon per year advanced biorefinery located in Keyes, California creates skilled jobs and generates taxes in a traditionally high unemployment area of the state. Aemetis has already received $1.5 million in investments from the EB-5 program, with an additional $4 million pending release from escrow. The remaining escrowed funds are expected to require about one year to clear the USCIS process before funds are released to the Company. The EB-5 debt financing carries a very low interest rate, and is due and payable 4 years from the date of funding.
“EB-5 funding is a low-cost source of capital for US job creation in traditionally high unemployment areas,” said Eric McAfee, Chairman and Chief Executive Officer of Aemetis, Inc. “Aemetis has created jobs and generated new capital investment in next-generation biofuel and renewable chemical technologies, matching the goals of the EB-5 program. The funds received from this EB-5 low interest rate financing will be applied to reduction of our current senior debt financing and funding for growth.”
Headquartered in Cupertino, California, Aemetis is an advanced fuels and renewable chemicals company that was founded in 2006. Aemetis owns and operates a 60 million gallon capacity ethanol and 420,000 ton animal feed plant in California that is the first upgraded facility approved by the EPA to produce D5 Advanced Biofuels using the sorghum/biogas/CHP pathway. Aemetis also built, 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 five granted patents on its Z-microbe and related technology for the production of renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.
Safe Harbor Statement
This press 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 the ability of our Low-Carbon Sorghum Ethanol Project to support the production of biofuels using grain sorghum as a feedstock, reduce the carbon intensity (CI) of our fuel ethanol, help develop a local California sorghum growing program and related supply chain, and to support new technologies that support lower carbon intensity transportation fuels. 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, a failure of the CEC to fund the grant, competition in the ethanol and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, counter-party risks, risks associated with changes to federal policy or regulation, risks associated with the conversion of the Keyes plant to the use of sorghum for ethanol production; and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2013, 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.