Boston, MA 05/21/2014 (wallstreetpr) – The renowned renewable energy company and provider of products and services to biodiesel fuel market, Methes Energies International Ltd. (NASDAQ:MEIL), needs money to expand its capacity, improve existing facilities and other corporate purposes. Therefore, the company intends to raise money through a stock offering because it considers the process as less expensive than going into debts.
The company plans to offer 2.5 million registered shares of its common stock shares. The company has also granted the underwriters to purchase additional shares of up to 15 percent of the offering to meet over allotments. The underwriters have up to 30 days to make an additional purchase in case of over-allotment.
The shares carry a par value of $0.01 per piece and will be offered to the public at $0.02 per share.
The company has tapped National Securities Corporation, a subsidiary of National Holdings, Inc. (OTCBB:NHLD), to act as the book-running manager in the equity offering. If all goes as expected, MEIL expects the stock offering to close on May 27. However, the process is also subject to certain conditions.
Putting the money to work
As already mentioned, Methes Energies International Ltd. (NASDAQ:MEIL) intends to put the raised funds into various projects that are geared toward improving its growth and enhancing the shareholder value. The immediate application of the proceeds raised through the stock offering will be increasing of the company’s production capacity.
The company anticipates a big demand for its biodiesel fuel solutions as excitement over cheap renewable energy solutions increase in North America and around the world. Therefore, by expanding its production capacity, MEIL not only intends to meet the needs of its existing customers but also capture the opportunities in the market.
The proceeds from the registered equity offering will also go into improvement of the Sombra plant as part of the capacity building.
The company also intends to divert some money into general corporate spending and working capital.
U.S. business opportunity
Methes Energies International Ltd. (NASDAQ:MEIL) recently announced high-profile deals with U.S. buyers of its biodiesel fuel products. The deals not only signal the successful foray that the company is making into the U.S. market, but also saw MEIL succeed in its efforts to sell directly to the U.S. buyers. Selling directly to buyers helps the company to realize higher profit margins that in turn support its bottom-line.
