DALLAS, Oct. 12, 2012 (GLOBE NEWSWIRE) -- Aventine Renewable Energy Holdings, Inc. (AVRWD) ("Aventine") announced that it will issue warrants to its stockholders of record as of October 12, 2012 (each, a "Record Holder"), other than in respect of the 2,186,298 shares of Aventine's common stock issued on September 24, 2012 to Aventine's term loan lenders as part of the restructuring transactions that were consummated on that date (the "New Equity"). Aventine will issue to each Record Holder its pro rata share of 787,855 warrants based on the number of issued and outstanding shares of common stock on October 12, 2012 held by such Record Holder, other than the New Equity. Excluding the New Equity, there are currently 167,100 shares of Aventine's common stock issued and outstanding. No fractional warrants will be issued. Each warrant will entitle the holder thereof the right to purchase one share of Aventine common stock at an exercise price of $61.75 within a period of five years from the date of issuance. If a warrant holder is a "Majority Stockholder" (as defined in the Warrant Agreement, dated as of September 24, 2012, between Aventine and American Stock Transfer & Trust Company, LLC, as warrant agent) the warrants (when "in-the-money") will be immediately exercisable in reliance upon Section 4(a)(2) and/or Rule 506 of Regulation D under the Securities Act of 1933, as amended (the "Securities Act"). Otherwise, the warrants will not be exercisable until the later of the one year anniversary date of issuance and the date a registration statement under the Securities Act covering the issuance of the underlying shares of common stock is declared effective (and provided that the warrants are then "in-the-money").
Aventine intends to use any proceeds from the exercise of the warrants to develop its production facilities and for general corporate purposes.
The warrants will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Aventine Renewable Energy
Aventine is a leading producer of ethanol. Through our production facilities, we market and distribute ethanol to many of the leading energy companies in the U.S. In addition to producing ethanol, our facilities also produce several by-products, such as distillers grain, corn gluten meal and feed, corn germ and grain distillers dried yeast, which generate revenue and allow us to help offset a significant portion of our corn costs.
Forward Looking Statements
Certain information included in this press release may be deemed to be "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," and the negatives of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, include the issuance of warrants to purchase common stock, and may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements.
Some of the factors that may cause Aventine's actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements include our ability to obtain and maintain normal terms with vendors and service providers, our ability to estimate allowed general unsecured claims, unliquidated and contingent claims and future distributions of securities and allocations of securities among various categories of claim holders, our ability to maintain contracts that are critical to our operations, our ability to attract and retain customers, our ability to fund and execute our business plan and any ethanol plant expansion or completion projects, our ability to receive or renew permits to construct or commence operations of our proposed capacity additions in a timely manner, or at all, laws, tariffs, trade or other controls or enforcement practices applicable to our operations, changes in weather and general economic conditions, overcapacity within the ethanol, biodiesel and petroleum refining industries, availability and costs of products and raw materials, particularly corn, coal and natural gas and the subsequent impact on margins, our ability to raise additional capital and secure additional financing, our ability to service our debt or comply with our debt covenants, our ability to attract, motivate and retain key employees, liability resulting from actual or potential future litigation or the outcome of any litigation with respect to our auction rate securities or otherwise, and plant shutdowns or disruptions. We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this release or to reflect any change in our expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based except as required by law.
CONTACT: Aventine Renewable Energy Holdings, Inc. Calvin Stewart Chief Financial Officer Ph: 214-451-6766 Fax: 214-451-6799Source:Aventine Renewable Energy Holdings, Inc.