Ever-Flowing Equity

How one producer raised capital in tight economic times
By Bryan Sims | January 12, 2011

Don’t tell Ever Cat Fuels LLC that the equity market has dried up. The biodiesel producer managed to raise $2.1 million in equity financing from a private placement round. In all, the company seeks to raise a total of approximately $2.25 million, according to a regulatory filing through the U.S. Securities and Exchange Commission.

For Ever Cat Fuels, the equity funds will be used for additional equipment purchases and upgrades to its 3 MMgy multifeedstock production facility in Isanti, Minn., according to Dave Wendorf, director of marketing for Mcgyan Biodiesel LLC. Ever Cat Fuels, which came online in 2009, licensed its process technology from Mcgyan Biodiesel LLC, a firm that is commercializing a novel process pioneered by Augsburg College researchers Clayton McNeff, Arlin Gyberg and Ben Yan.

“The private placement took about six months to complete,” Wendorf says, adding that demand to fulfill Minnesota’s B5 mandate was a driving force behind Ever Cat Fuels’ successful run to stay in business all of 2010, despite a lapsed tax credit. “We haven’t experienced any issues at all,” Wendorf adds. “In fact, with the lapse of a credit, the value of the RINs was also at a point where they almost took the place of a credit.”

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