Dec 23 2010
Cereplast, Inc. (NASDAQ: CERP), a leading manufacturer of proprietary bio-based, compostable and sustainable plastics, announced today that it has secured $5 million in growth capital from Horizon Technology Finance Corporation (NASDAQ: HRZN) to support the Company’s exponential growth and expansion.
The investment capital will be used for the purchase of additional raw materials and working capital needed to meet rapidly increasing global demand for Cereplast resin.
“We are excited to partner with Horizon Technology Finance who recognizes Cereplast’s value and enormous growth potential as the global market for bioplastics soars,” said Frederic Scheer, Chairman and CEO of Cereplast. “We have reached a critical inflection point as we are now in a position to support aggressive growth and expansion while simultaneously having the ability to handle a critical mass of demand. I am confident that Cereplast will see further accomplishments in the first quarter of 2011 as we continue to forge forward with expanding current contracts and securing new agreements from product distributors and manufacturers across the globe.”
“Horizon Technology Finance is pleased to work collaboratively with Cereplast as we invest in clean-technology, growth companies whose competitive advantage in their market represents a sizeable opportunity,” said Jerry Michaud, President of Horizon Technology Finance Corporation. “Horizon supports Cereplast’s leadership position as it seeks to continue its robust growth in the bioplastics space.”
According to the terms of the loan agreement, Cereplast, Inc. received an initial installment of $2.5 million with an additional $2.5 million to be funded during its 2011 first quarter ending March 31, 2011, pending reaching certain revenue targets for January and February of 2011. Each $2.5 million installment carries a term of 39 months from the date of funding with interest of 12 percent.