Packaging
Cereplast Exceeds Horizons Revenue Targets for January and February 2011
Tuesday 22. February 2011 - Company Receives Additional $2.5 Million Growth Capital Infusion from Horizon Technology Finance
Cereplast, Inc. (NASDAQ: CERP), a leading manufacturer of proprietary bio-based, compostable and sustainable plastics, announced today that it has received an additional $2.5 million in growth capital from Horizon Technology Finance Corporation (NASDAQ: HRZN), pursuant to its previously announced debt financing agreement on December 22, 2010. Under the terms of the agreement, the second installment of $2.5 million was contingent upon Cereplast meeting specific revenue targets for January and February of 2011. As of February 15, 2011, Cereplast has demonstrated, to Horizons satisfaction, that it will exceed the stated revenue targets.
The additional capital will be used for the purchase of raw materials and as working capital needed to meet the robust demand for Cereplast resin and to fill the Companys growing order pipeline resulting from new distribution agreements secured in 2011.
“Cereplast is on track to reach its revenue target of $24 to $32 million this year, a projected 400% increase from 2010,” said Frederic Scheer, Chairman and CEO of Cereplast. “Because of growing demand for Cereplast resin, we have already satisfied Horizon for the first two months of 2011. As the burgeoning market for bioplastic material continues to soar, we are well-positioned to meet increasing demand from regions across the globe.”
According to the terms of the December 22, 2010 loan agreement, Cereplast, Inc. received an initial installment of $2.5 million from Horizon at signing, with an additional $2.5 million to be funded upon reaching revenue targets of $2.0MM for January and $2.5MM for February of 2011. Each $2.5 million installment carries a term of 39 months from the date of funding with interest of 12 percent.