NEW YORK ( TheStreet) -- KiOR Inc (KIOR) is soaring on Tuesday after receiving funding from venture capitalist Vinod Khosla. In March, the biodiesel producer said its operations were under considerable financial strain and that if it didn't have a debt deal finalized by April 1, it would not be able to continue as a going concern.
By noon, shares had exploded 64.1% to 94 cents. Trading volume of 11.5 million was more than five times its three-month daily average.
In an SEC filing filed after the bell Monday, KiOR said it had entered into a senior secured promissory note purchase agreement for up to $25 million in financing. The first tranche, likely to close on April 3, will see Khosla's KFT Trust purchasing $5 million of senior secured debt.
The Pasadena, Texas-based business said it would also issue KFT Trust a 2014 warrant to purchase 872,600 of common stock at 57.3 cents a share.
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