Cereplast Inc. (El Segundo, CA) has secured $5 million of investment capital from Horizon Technology Finance Corp. (Farmington, CT) for the purchase of additional raw materials and as working capital to support what Cereplast terms exponential global demand growth for its bio-based compostable and sustainable plastic resins.
The loan agreement gave Cereplast an initial sum of $2.5 million in December 2010, with the additional $2.5 million to be funded during the first quarter of 2011 pending attaining revenue targets for January and February of 2011. Each installment has a term of 39 months from the date of funding and carries an interest rate of 12%.
Frederic Scheer, chairman and CEO of Cereplast, said, "We have reached a critical inflection point as we are now in a position to support aggressive growth and expansion while simultaneously having the ability to handle a critical mass of demand. I am confident that Cereplast will see further accomplishments in the first quarter of 2011 as we continue to forge forward with expanding current contracts and securing new agreements from product distributors and manufacturers across the globe."...