EL SEGUNDO, Calif., Aug. 31, 2012 (GLOBE NEWSWIRE) -- Cereplast, Inc. (Nasdaq:CERP), a leading manufacturer of proprietary biobased, sustainable bioplastics, today announced the completion of a fund raising transaction for the sale of up to $5 million. For full details pertaining to the transaction, please refer to the Company's Form 8-K with the SEC, which can be found at www.cereplast.com .
On August 24, 2012, Cereplast entered into a Stock Purchase Agreement with Ironridge Technology Co., a division of Ironridge Global IV, Ltd, for the sale of up to $5 million of convertible redeemable Series A Preferred Stock at a price of $10,000 per share. The closing of the transactions contemplates the fulfillment of certain closing conditions. The initial closing with respect to the sale of 30 shares of Series A Preferred Stock is expected to occur on or about August 31, 2012.
Frederic Scheer, Chairman and CEO of Cereplast, stated, "I want to thank the team at Ironridge for supporting Cereplast during this critical time. The transaction will provide us with the access to liquidity to resolve the receivables issues and monetize it, but also to re-start our production schedule and access the necessary raw materials. We made progress with our strategic plan to distribute the Cereplast Hybrid Resins® inventory and we have been working diligently with our partners in India who have identified several interested parties requesting anywhere from 20 tons to over 2000 tons per month of product. Our newly opened office and feet on the ground in India was a necessary step we had to take to expedite the process in the most efficient manner possible. We are confident we will have a successful resolution in the coming months. Additionally we believe that our presence in India with a dedicated team will allow us to build new working relationships with new customers. We have already made numerous successful trials of products in housewares, construction and packaging that should bring good results for our shareholders."