Cereplast Enters Definitive Pact to Raise $7.5 Million in Registered Direct Financing

Jun 15, 2010 (Close-Up Media via COMTEX) —

Cereplast, Inc. announced that it has entered into definitive agreements with institutional investors to purchase 2,137,642 units for gross proceeds of approximately $7.5 million before placement agent fees and offering expenses.

According to a release, the offering is made pursuant to the Form S-3 shelf registration statement that was filed by Cereplast with the Securities and Exchange Commission (SEC). The offering is expected to close on or about June 15, subject to the satisfaction of customary closing conditions. Cereplast intends to use the net proceeds from the offering for general corporate purposes.

The units sold in this offering consists of one share of common stock and one warrant to purchase 0.5 of a share of common stock with an exercise term of five years. The warrants have an exercise price of $4.44 per share of common stock and are exercisable starting with the date that is 180 days from the closing of the offering. The shares of common stock and warrants are immediately separable and will be issued separately.

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