Marrone Bio Innovations Inc. (MBII)

[greenvestor2000]

News of December 2017 officially confirmed today

https://www.bizjournals.com/sacramento/news/2017/12/19/marrone-bio-enters-deal-to-reduce-debt-by-72.html

Marrone Bio enters deal to reduce debt by 72 percent
By Victor A. Patton – Reporter, Sacramento Business Journal
Dec 19, 2017, 4:37pm

Davis-based biopesticide company Marrone Bio Innovations on Monday announced it's entering into a financing and debt restructuring agreement that’s expected to decrease the company’s debt by 72 percent.

During a Monday conference call with investors, CEO Pam Marrone called the agreement with lead investor Ospraie Ag Science LLC one of the most “significant milestones” in the company’s corporate history.

“The transactions announced today are expected to provide financial support for the company’s continued operations and growth goals for the foreseeable future,” Marrone said Monday. “This puts us in an extremely strong position to execute on our core business.”

Among the agreement’s highlights, New York-based Ospraie Ag Science will purchase around $30.7 million in shares and warrants, while other buyers will purchase $13.3 million.

The agreement is expected to convert $45 million of Marrone Bio’s debt to equity, with an effective conversion rate of $1.75 per share of common stock — reducing the company’s outstanding debt from $62.5 to $17.5 million.

If approved at the company’s annual stockholders meeting in January, the deal is expected to close in February.

Under the agreement, two new Class I members of the company’s board of directors will be designated by Ospraie Ag Science after the deal closes. Plus, Marrone Bio (Nasdaq: MBII) has agreed to the election of two Class II board members during the annual meeting of stockholders, according to a news release.

Investors reacted positively to the news Monday, as the company’s shares rose 15.79 percent to $1.10.

Marrone Bio makes biologically-based replacements for chemical pesticides.