Pacific Ethanol, Inc.(Nasdaq: PEIX)announced that it has signed a definitive agreement with Cascade Investment, L.L.C., the personal investment company of Microsoft Chairman Bill Gates, to sell 5,250,000 shares of Series A Cumulative Redeemable Convertible Preferred Stock, which will result in gross proceeds of $84 million. The shares of preferred stock will be convertible into shares of common stock at an initial conversion ratio of two shares of common stock for each share of preferred stock which, if converted immediately, would result in the issuance of 10,500,000 shares of common stock at an effective price of $8.00 per share.
Pacific Ethanol has announced plans to build five ethanol plants in the Western United States with an expected combined installed annual ethanol capacity of at least 200 million gallons. Construction has begun on the first 35 million gallon per year plant and permitting and engineering has begun on the next three.
Gates fund invests $84M in ethanol producer, Puget Sound Business Journal, November 16, 2005