Cereplast, Inc. cancelled the transaction annnounced on August 24, 2012.
January 20, 2014 at 09:30 am IST
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Cereplast, Inc. (NasdaqCM:CERP) announced a private placement of 500 convertible redeemable series A preferred stock at $10,000 per share for gross proceeds of up to $5,000,000 with existing investor, Ironridge Technology Co., a division of Ironridge Global IV, Ltd., on August 24, 2012. The closing of the transaction contemplates the fulfillment of certain closing conditions. The initial closing with respect to the sale of 30 shares is expected to occur on or about August 31, 2012. The series A preferred stock is convertible into shares at a conversion price of $0.25 per share. The securities will be issued pursuant to Regulation D of the Securities Act. Ardour Capital Investments, LLC acted as a sole placement agent to the company in the transaction.
On January 2, 2013, the company announced that it has amended the terms of the financing, such that, as a condition to additional closings under the transaction, there must be a registration statement covering such number of shares necessary for conversion of all of the then outstanding shares of series A preferred stock and such additional shares to be issued at such additional closing, rather than twice the number of such shares, as was required under the original purchase agreement. The company also announced that the investor may not assign any of its rights or obligations under the financing.
The transaction was cancelled on January 20, 2014.
Hong Yuan Holding Group, formerly Cereplast Inc, is engaged in developing and commercializing bio-based resins through two product families: Cereplast Compostables Resins, which are compostable, renewable, ecologically sound substitutes for petroleum-based plastics, and Cereplast Sustainables resins (including the Cereplast Hybrid Resins product line), which replaces up to 90% of the petroleum-based content of traditional plastics with materials from renewable resources. Its resins can be converted into finished products using conventional manufacturing equipment without additional capital investment by downstream converters. Its compostable and sustainable resins can be used in the conventional converting process that includes injection molding, thermoforming, blown film, blow molding, extrusion for profiles and extrusion coating.