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Comprised of $85 million of Convertible Notes and Future Equity Commitments by Various Khosla Entities
In Conjunction With $15 Million Stock Purchase and Future Equity Commitment by Bill Gates Affiliate
PASADENA, Texas, Oct. 21, 2013 (GLOBE NEWSWIRE) -- KiOR, Inc. (Nasdaq:KiOR), announced today the execution of $100 million in committed equity related financing in two separate private placement transactions to support the Company's recently announced expansion of production capacity in Columbus, Mississippi, called the Columbus II Project. Once completed with the planned technology enhancements for both Columbus facilities, the Columbus II Project is expected to achieve overall positive cash flow from operations for KiOR.
In the first private placement, KiOR has received $85 million of committed equity related financing from Khosla Ventures III, and various other Khosla entities. This financing consists of the immediate issuance of $42.5 million of Senior Secured Mandatorily Convertible Notes ("Notes") plus the conversion of $53,197,308 of the Company's existing senior debt held by the Khosla entities. The Notes will convert into Class A Common Stock at a price of $2.897 per share, which represents a 25% premium to the average 20-day daily volume weighted average price of the Class A Common Stock up to and including October 17, 2013, unless decreased due to subsequent equity issuances or Notes (other than the two private placements announced here) by the Company below the conversion price before October 21, 2014. Also as part of this transaction, the Company has received commitments to purchase up to an additional $42.5 million of Class A Common Stock, either through the direct issuance of such equity or conversion of Notes. The conversion of the Notes and the future equity related commitments are contingent upon, among other things, the Company fully funding the Columbus II Project, which it expects to complete through a debt offering, and certain timing restrictions.