Ceres Inc (NASDAQ:CERE) Raises $23M

Posted by admin March 11, 2014 0 Comment 1115 views

Ceres Inc (NASDAQ:CERE) which is into agro tech, chemicals and fertilizers vertical has announced on 10th March that it is closing its previously public offer of 20 million shares of common stock. The follow up public offer had been priced at $1. The firm also disclosed that its underwriters exercised their option by going in for purchase of an additional 3 million shares of common stock, which had been set aside to account for any overallotments. From this exercise, the $26.36 million market capped firm was able to raise close to $23 million as proceeds which it plans to use for its general corporate purposes and other operational expenses.

Modalities Of Offer

Aegis Capital Corp  had been retained as the sole book-running managers for this exercise by Ceres Inc (NASDAQ:CERE), while Trout Capital LLC were advising the firm with regards to the modalities and pricing of the offer.

Yesterday’s announcement comes on the back of 4th March dated underwriting agreement that Ceres Inc (NASDAQ:CERE) had entered with Aegis Capital Corp. As per the terms, Aegis was tasked with underwriting the whole public issues exercise of common stock issued by the agri tech firm. The common shares on offer had a par value of one cent per share and a face value of $1 per share.

Underwriting Agreement

The firm also issued additional warrants of close to 4, 80,000 shares to companies and individuals which had helped the management team in designing the underwriting offer. This allotment was made in lieu of compensation for the services rendered. The exercise price of the warrant has been fixed at $1.5 per share and becomes tradable between 4th March 2015 and 4th March 2019 after which the warrants are set to expire. In the event of the warrants being exchanged for common stock, the exact exchange terms would be determined at the time by the company.

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