By Devika Patel
Knoxville, Tenn., Dec. 18 - BlueFire Ethanol Fuels, Inc. completed a $15.5 million private placement of stock, according to an 8-K filed with the Securities and Exchange Commission Tuesday.
The company sold 5,740,741 shares at $2.70 apiece. The shares are accompanied by an equal number of warrants to buy shares at $2.90 apiece for five years.
The company agreed to register the shares issued and underlying the issued warrants within 45 days of the deal's closing. If BlueFire Ethanol fails to register the stock, it will pay each investor 1% of the shares' purchase price for each day past the deadline. If the registration statement is not declared effective by the effective date, 150 days after closing, then the company will pay each investor 0.5% of the shares' purchase price for the shares. If the registration still isn't effective 180 days after closing, the investors will be paid 1% of the purchase price.
Ardour Capital Investment, LLC was agent.
The investors were Quercus Trust, James G. Speirs and James G. Speirs SEP IRA.
Irvine, Calif.-based BlueFire Ethanol provides an Arkenol patented process to demonstrate production with ethanol from wood wastes, urban trash, rice, wheat straws and other agricultural residues.
| Issuer: | BlueFire Ethanol Fuels, Inc.
|
| Issue: | Stock with warrants
|
| Amount: | $15.5 million
|
| Shares: | 5,740,741
|
| Price: | $2.70
|
| Warrants: | For 5,740,741 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.90
|
| Settlement date: | Dec. 14
|
| Agent: | Ardour Capital Investment, LLC
|
| Investors: | Quercus Trust, James G. Speirs, James G. Speirs SEP IRA
|
| Stock symbol: | OTCBB: BFRE
|
| Stock price: | $3.21 at close Dec. 14
|
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