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New Generation Biofuels Holdings, Inc. Completes Registered Offering of Common Stock and Warrants

Strategic Insights

— 1 min read

New Generation Biofuels Holdings, Inc., a renewable fuels provider, has closed its registered offering of 1,926,250 shares of common stock and warrants to purchase 577,875 shares of common stock. The shares and warrants were sold in units at a price of $0.80 per unit, with each unit consisting of one share of common stock and a warrant to purchase 0.30 shares of common stock at an exercise price of $0.90 per share. The company expects to use the net proceeds of approximately $1.304 million for general corporate purposes, including working capital and capital expenditures, such as the expansion of its production facility in Baltimore, Maryland.

Key Takeaways:

  • New Generation Biofuels Holdings, Inc. completed a registered offering of 1,926,250 shares of common stock and warrants to purchase 577,875 shares of common stock.
  • The gross proceeds of the offering were approximately $1.54 million, with net proceeds of around $1.304 million after deducting placement agent's fees and estimated offering expenses.
  • The company will use the net proceeds for general corporate purposes, including working capital and capital expenditures for the expansion of its production facility in Baltimore, Maryland.
  • Jesup & Lamont Securities Corporation acted as the placement agent in this transaction.
  • The securities were offered pursuant to a registration statement filed and declared effective by the Securities and Exchange Commission (SEC).
  • A prospectus supplement related to the offering was filed with the SEC on December 11, 2009.
  • New Generation Biofuels Holdings, Inc. is a renewable fuels provider with an exclusive license for North America, Central America, and the Caribbean to commercialize proprietary technology to manufacture alternative biofuels.
  • The company believes its proprietary biofuel can provide a lower-cost, renewable alternative to traditional fuels with significantly lower emissions.

Statistics:

  • 1,926,250 shares of common stock were sold in the registered offering.
  • 577,875 shares of common stock were sold through the warrants.
  • The gross proceeds of the offering were approximately $1.54 million.
  • The net proceeds after deducting placement agent's fees and estimated offering expenses were approximately $1.304 million.

Sources:

  • Energy Weekly News via VerticalNews.com
  • New Generation Biofuels Holdings, Inc. press release
  • Securities and Exchange Commission (SEC) registration statement

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