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.
Must read: Warren Buffett's 10 Favorite StocksKIOR data by YCharts