Renewable fuels provider New Generation Biofuels raises $1.64m in second round of private placement

1 April 2009

Renewable fuels provider New Generation Biofuels Holdings, Inc. has raised $1.64m in a second round of its March 2009 private placement. In the aggregate, the company has raised $3.17m in its private placement.

In the second round, the company issued 2,050,000 shares of its common stock at a price of $0.80 per share. The investors also received five-year warrants exercisable for a number of shares of common stock equal to the same number of shares they purchased at an exercise price of $0.90 per share, for a total of 2,050,000 shares. The closing bid price of common stock on the Nasdaq Capital Market on the day of the closing, 30 March 2009, was $0.68 per share.

The lead investor in this second closing was 2020 Energy. The managing member of 2020 Energy has partnered with the inventor of the company’s proprietary biofuel technology, Ferdinando Petrucci, to form PTJ Bioenergy Holdings. As a result of the transaction, 2020 Energy now holds 7.3 million shares, or approximately 29.5 per cent, of the company’s outstanding common stock. 2020 Energy first became an affiliate when they purchased 5,301,300 shares from Global Energy Holdings Group, Inc. (formerly Xethanol Corporation) on 17 March 2009.

‘We consider this additional investment from 2020 Energy as a sign of confidence in our technology and our business model,’ said Cary Claiborne, CEO of New Generation. ‘We are very pleased to have completed a second successful closing of our private placement in less than a month, and we believe it demonstrates our ability to attract investors during these challenging economic conditions.’

New Generation Biofuels holds an exclusive license for North America, Central America and the Caribbean to commercialise proprietary technology to manufacture alternative biofuels from vegetable oils and animal fats.

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Tags: biofuel

This story was published on Wednesday, April 1st, 2009 at 10:21 am and is filed under North America, biomass/biofuel, deals. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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