Show Me Ethanol successfully raises millions
March 5, 2009
BY Kris Bevill
Web exclusive posted April 14, 2009, at 1:16 p.m. CST
True to its word, Missouri-based Show Me Ethanol LLC announced that it has successfully raised the nearly $6 million in equity needed for the company to safely continue its operations. Through its annual U.S. Securities and Exchange Commission filing, the company reported earlier this year that it had amassed nearly $19 million in losses during fiscal year 2008. It was also unable to fulfill obligations for supply contracts for 4.9 million bushels of corn from Ray-Carroll Country Grain Growers Inc.— Show Me Ethanol's sole corn supplier and largest equity owner. The company said it needed to raise equity in order to avoid defaulting on loans and that future cash flows would be sufficient in insure compliance on debt notes.
As of March 31, Show Me Ethanol stakeholders had supplied the necessary capital to keep the company afloat and a conversion agreement had been reached with Ray-Carroll to fix the value of Show Me's outstanding corn contracts as well as to modify other details of their arrangement.
At the same time, Show Me Ethanol's Chief Financial Officer Michael Council announced his resignation effective April 30. A replacement to fill the position has yet to be announced.
True to its word, Missouri-based Show Me Ethanol LLC announced that it has successfully raised the nearly $6 million in equity needed for the company to safely continue its operations. Through its annual U.S. Securities and Exchange Commission filing, the company reported earlier this year that it had amassed nearly $19 million in losses during fiscal year 2008. It was also unable to fulfill obligations for supply contracts for 4.9 million bushels of corn from Ray-Carroll Country Grain Growers Inc.— Show Me Ethanol's sole corn supplier and largest equity owner. The company said it needed to raise equity in order to avoid defaulting on loans and that future cash flows would be sufficient in insure compliance on debt notes.
As of March 31, Show Me Ethanol stakeholders had supplied the necessary capital to keep the company afloat and a conversion agreement had been reached with Ray-Carroll to fix the value of Show Me's outstanding corn contracts as well as to modify other details of their arrangement.
At the same time, Show Me Ethanol's Chief Financial Officer Michael Council announced his resignation effective April 30. A replacement to fill the position has yet to be announced.
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