Alto Ingredients Inc (ALTO)

[moneym8ker]

They raised $95 million dollars with a share offering.

The name change, cusip # change and associated fees should be nothing more than a drop in the bucket.

Should be nothing more.

The pressure on PEIX is purely due to the fact that they raised a lot of money with their share offering and said they’d use it to pay off part of their $135 million dollars in debt.
They also sold an asset valued at $10 million and said they’d use those proceeds as well to pay off their debt.

About a week ago they announced that instead of paying off that debt they opted to pay only $30 million off and restructure the rest.

They raised $105 million dollars and said they’d use that money to pay off most of their total of $135 million.

They shocked investors when they changed their mind and paid off $30 million and restructured the rest.


Piss poor management or outright misrepresentation is pressuring the stock.

I know it’s all in the fine print and they did say in their stock offering that they want to use it to pay off debt but can use the proceeds at their discretion but when their headline is that they’ll use the proceeds to pay off debt I think most investors expect them to use $105 million to pay off more than $30 million