Deal offers 12.5 million common shares at $0.80, a 37.01% discount
By Devika Patel
Knoxville, Tenn., May 17 - JBI, Inc. settled a $9.87 million tranche of a $10 million private placement of stock on May 15, according to an 8-K filed Thursday with the Securities and Exchange Commission.
In the first tranche, the company sold 12,331,250 common shares at $0.80 apiece, which is a 37.01% discount to the May 14 closing share price of $1.27. The company may sell up to 12.5 million shares at that price in the placement.
"The timeliness of this financing is ideal," chief financial officer Matthew Ingham said in a press release. "We now have the capital resources to accelerate the commercial roll-out of our P2O processors at our Niagara Falls plant and the initial RockTenn sites, endeavoring to achieve our near term goal of becoming cash flow positive."
The Cambridge, Mass., company converts recyclable plastic into oil.
| Issuer: | JBI, Inc.
|
| Issue: | Common stock
|
| Amount: | $10 million
|
| Shares: | 12.5 million
|
| Price: | $0.80
|
| Warrants: | No
|
| Settlement date: | May 15 (for $9,865,000)
|
| Stock symbol: | Pink Sheets: JBII
|
| Stock price: | $1.27 at close May 14
|
| Market capitalization: | $82.28 million
|
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