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8-K - FORM 8-K - HONG YUAN HOLDING GROUP | c12996e8vk.htm |
Exhibit 99.1
CEREPLAST
EXCEEDS HORIZONS REVENUE TARGETS
FOR JANUARY AND FEBRUARY 2011
FOR JANUARY AND FEBRUARY 2011
Company Receives Additional $2.5 Million Growth Capital Infusion
from Horizon Technology Finance
from Horizon Technology Finance
EL SEGUNDO, Calif.February 22, 2011Cereplast, Inc. (NASDAQ: CERP), a leading manufacturer of
proprietary bio-based, compostable and sustainable plastics, announced today that it has received
an additional $2.5 million in growth capital from Horizon Technology Finance Corporation (NASDAQ:
HRZN), pursuant to its previously announced debt financing agreement on December 22, 2010. Under
the terms of the agreement, the second installment of $2.5 million was contingent upon Cereplast
meeting specific revenue targets for January and February of 2011. As of February 15, 2011,
Cereplast has demonstrated, to Horizons satisfaction, that it will exceed the stated revenue
targets.
The additional capital will be used for the purchase of raw materials and as working capital needed
to meet the robust demand for Cereplast resin and to fill the Companys growing order pipeline
resulting from new distribution agreements secured in 2011.
Cereplast is on track to reach its revenue target of $24 to $32 million this year, a projected
400% increase from 2010, said Frederic Scheer, Chairman and CEO of Cereplast. Because of growing
demand for Cereplast resin, we have already satisfied Horizon for the first two
months of 2011. As the burgeoning market for bioplastic material continues to soar, we are
well-positioned to meet increasing demand from regions across the globe.
According to the terms of the December 22, 2010 loan agreement, Cereplast, Inc. received an initial
installment of $2.5 million from Horizon at signing, with an additional $2.5 million to be funded
upon reaching revenue targets of $2.0MM for January and $2.5MM for February of 2011. Each $2.5
million installment carries a term of 39 months from the date of funding with interest of 12
percent.
About Cereplast, Inc.
Cereplast, Inc. (NASDAQ: CERP) designs and manufactures proprietary bio-based, sustainable plastics
which are used as substitutes for petroleum-based plastics in all major converting processes such
as injection molding, thermoforming, blow molding and extrusions at a pricing structure that is
competitive with petroleum-based plastics. On the cutting-edge of bio-based plastic material
development, Cereplast now offers resins to meet a variety of customer demands. Cereplast
Compostables® Resins are ideally suited for single use applications where high bio-based content
and compostability are advantageous, especially in the food service industry. Cereplast
Sustainables Resins combine high bio-based content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as
automotive, consumer electronics and packaging. Learn more at www.cereplast.com. You may also visit
our social networking pages at Facebook.com/Cereplast, Twitter.com/Cereplast and
Youtube.com/Cereplastinc.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. When used in this press release, the words
anticipate, believe, estimate, may, intend, expect and similar expressions identify
such forward-looking statements. Actual results, performance or achievements could differ
materially from those contemplated, expressed or implied by the forward-looking statements
contained herein. These forward-looking statements are based largely on the expectations of the
Company and are subject to a number of risks and uncertainties. These include, but are not limited
to, risks and uncertainties associated with: the impact of economic, competitive and other factors
affecting the Company and its operations, markets, product, and distributor performance, the impact
on the national and local economies resulting from terrorist actions, and U.S. actions
subsequently; and other factors detailed in reports filed by the Company.
Cereplast, Inc.
Nicole Cardi
310-615-1900 x154
ncardi@cereplast.com
or
MKR Group, Inc.
Investor Relations
Charles Messman or Todd Kehrli
323-468-2300
cerp@mkr-group.com
or
Trontz Public Relations
Bari Trontz
212-566-2310
bari@trontzpr.com
Nicole Cardi
310-615-1900 x154
ncardi@cereplast.com
or
MKR Group, Inc.
Investor Relations
Charles Messman or Todd Kehrli
323-468-2300
cerp@mkr-group.com
or
Trontz Public Relations
Bari Trontz
212-566-2310
bari@trontzpr.com