KiOR uncertain about its ability to continue operations, must acquire additional capital in order to avoid filing for bankruptcy; delivery of remaining payments from US$25M commitment will only keep company going through August 31, finds annual report
May 19, 2014
(Industry Intelligence Inc.)
– KiOR, Inc. is uncertain about its ability to continue operations, according to the company’s March 17 annual report, Biomass Magazine reported on May 14.
KiOR suspended all optimization projects at its biofuels plant in Columbus, Mississippi, as of March 31. As of that time, it had not made any demonstrable progress toward reaching the first of the required performance milestones.
The company must acquire additional capital to avoid filing for bankruptcy regardless of whether it receives the remaining tranche payments, which are capped at US$5 million per month, from Vinod Khosla’s KFT Trust. The Trust committed a total of $25 million to KiOR, contingent upon the achievement of certain milestones.
The first $5 million tranche closed on April 3. Even if the additional payments are made, the company must still secure additional funding beyond August 31 in order to avoid filing for bankruptcy, according to the annual report.
The company noted that it may have to make significant changes to its business structure in order to meet the necessary milestones and secure additional funding.
KiOR has also received numbers notifications of deficiency from the Listing Qualifications Department of the NASDAQ Stock Market LLC, and could potentially face delisting if these concerns are not addressed
The primary source of this article is Biomass Magazine, Grand Forks, North Dakota, on May 14, 2014. Click here to see the original article.