Kior gets commitments for its second biofuel plant
The operator of the first US commercial scale cellulose biofuel plant, Kior Inc., had recently received commitments amounting to USD100 million in financing. The sources are Khosla Ventures LLC and Gates Ventures LLC for its business expansion at its Columbia, MS location.
To raise the funds, Kior had issued USD42.5 million in convertible debt to Khosla Ventures. There was also a side agreement to purchase as much as USD42.5 million shares in the biofuel company after its raises funding for its Columbus II project. Gates Ventures on the other hand purchased USD7.5 million equity shareholdings and would purchase another USD7.5 milion in shares when the plant is fully funded.
The terms of the agreement were disclosed through a statement from Kior Inc.
Kior for its part is expecting the completion of the financing for the USD225 million Columbus II plant through a debt offer. For this, Vinod Khosla and Khosla Ventures had committed another USD50 million just last month. According to data compiled by Bloomberg, Khosla Ventures is the largest shareholder in Kior with a 26% shareholdings.