Pacific Ethanol (NSDQ: PEIX) announced after the market close Thursday that the company had snagged a $40 million cash infusion by selling stock to Lyles United.
The news came less than a month after the Sacramento, Calif.-based ethanol producer said it might be forced to delay or abandon construction plant projects if it is unable to raise additional financing (see Pacific Ethanol Falls 13% on Expected Loss). The company also defaulted on a credit agreement because of a delay in the construction of two plants, according to Seeking Alpha.
On Thursday, Pacific Ethanol said it had received waivers from lenders related to the credit agreement.
With its most recent investment, Pacific Ethanol will stay on track for its goal of 220 million gallons in annual operating capacity this year, the company’s CEO, Neil Koehler, said in a written statement.
In December, Pacific Ethanol halted construction of one of its plants (see Biofuel Forecast Buoys a Bit).
Thursday’s news helped drive the company’s stock up $0.37, or 8.26 percent, to close Friday at $4.85 per share.