This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cereplast Announces $12 Million Private Placement

Cereplast, Inc. (NASDAQ:CERP), a leading manufacturer of proprietary bio-based, compostable and sustainable plastics, announced today that it has entered into a Securities Purchase Agreement with several institutional investors. Under the terms of the Purchase Agreement, the Company has agreed to sell in a private placement approximately 2.6 million units consisting of one share of common stock and warrants to purchase 0.25 shares of common stock at a price of $4.75 per unit resulting in gross proceeds to the company of approximately $12 million. Cereplast will receive net proceeds of approximately $11 million after fees and expenses related to the private placement. The Warrants are exercisable at a price of $6.35 per share. Lazard Capital Markets LLC served as lead placement agent for the offering with Merriman Capital, Inc. and Ardour Capital Investments, LLC acted as co-placement agents.

Proceeds from the financing will be used for working capital to fill the Company’s rapidly growing order pipeline resulting from new distribution agreements secured in 2011 in Europe. During the first three weeks of 2011, Cereplast announced new distribution agreements in Italy, Romania, Poland and Slovenia with multiple companies. These contracts reflect Cereplast’s rapid growth and expansion across the Pan-European marketplace.

In 2010, Cereplast’s total sales revenue was $6.3 million, a 133% percent increase from $2.7 million in 2009. 2010 sales revenue was limited due to supply constraints on raw materials from mid-November through December. The supply of raw materials has improved and projected revenue for Q1 2011 is between $5.0 million and $6.5 million. Projected revenue for the 2011 full year is between $24 million and $32 million, a 300% to 400% increase compared to 2010.

"Demand for bioplastic resin in Europe continues to soar, and the explosive growth we are experiencing in the region is reflected in the number of new contracts we have entered into there in 2011,” said Frederic Scheer, Chairman and CEO of Cereplast, Inc. “The increasing market penetration we are gaining in various parts of Europe gives us greater visibility to outline our growth expectations for 2011.”

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs