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PetroAlgae May Raise $200 Million in Initial Public Offering
2010-08-12 05:03:29.867 GMT
By Andrew Herndon
Aug. 12 (Bloomberg New Energy Finance) -- PetroAlgae Inc.,
a U.S. developer of an algae technology for making biofuels and
protein, plans an initial public offering that may raise as much
as $200 million.
The Melbourne, Florida-based company filed an S-1
registration statement with the U.S. Securities and Exchange
Commission yesterday, it said. Goldman Sachs Group Inc., UBS AG
and Citigroup Inc. were retained as underwriters.
Laurus Capital Management LLC and Valens Capital Management
LLC, the main shareholders of PetroAlgae, will sell shares in
the offering, the preliminary prospectus said, without giving
details. PetroAlgae will use part of the proceeds to pay debt,
it said.
PetroAlgae plans to license the design of "micro-crop"
production facilities to oil companies, independent refiners,
power companies and agricultural companies, according to the
preliminary prospectus.
The company listed among risk factors that it had a losses
of $30.3 million in 2009, $20 million in 2008 and $8.3 million
the year before.
The "aquatic microorganisms" grown through the
PetroAlgae's process can make two end-products, biocrude and
protein for the human food or animal feed market, the company
said. The protein product may require regulatory approval before
being sold in those markets.
PetroAlgae said it has signed non-binding memoranda of
understanding with five prospective customers for as many as 18
licenses, without identify them.
The company didn't say how many shares will be sold or at
what price in the filing. PetroAlgae said the "proposed maximum
aggregate offering" will be $200 million.
For Related News and Information:
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Top renewable energy, environment page: GREEN <GO>
--Editors: Aaron Sheldrick, Peter Langan.
To contact the reporter responsible for this story:
Andrew Herndon in Washington at +1-202-654-1282 or
aherndon2@bloomberg.net.
To contact the editor responsible for this story:
Ethan Zindler at +1-202-654-1276 or
ezindler@bloomberg.net.
