Pacific Ethanol Inc. announced a public stock sale Thursday, the latest display of the Sacramento ethanol producer’s comeback.
The company said the stock sale has been priced at $16 a share, raising around $28 million. After underwriting fees and other expenses, the company will receive about $26 million in proceeds, the bulk of which will be used for “general corporate purposes.” The sale is expected to close next Tuesday.
News of the offering sent the company’s stock tumbling $1.49 a share to close at $15.76 on the Nasdaq market. It fell another 23 cents in after-hours trading.
Pacific Ethanol has been recovering from a steep slump that prompted it to idle its production plants and place them in Chapter 11 bankruptcy protection five years ago, when ethanol prices collapsed. Since then the market has recovered. The company has resumed production at three of its four plants and recently announced that it’s about to restart the fourth, in Madera. It also just announced record profits for the fourth quarter.
Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.