Aventine Renewable Energy Holdings, Inc. Announces Reverse Stock Split
22 September 2012 - 7:10AM
Aventine Renewable Energy Holdings, Inc. (OTCBB:AVRW) ("Aventine")
announced that Aventine filed its amended charter to effect the
previously announced one-for-50 reverse stock split of Aventine's
Common Stock, pursuant to which each 50 shares of Common Stock
outstanding was combined into one share of Common Stock. The
reverse stock split will be effective in the market as of the open
of business on September 24, 2012, under the new trading symbol of
"AVRWD" (with the "D" to be removed 20 business days after the
effective date in the market). No fractional shares will be issued
and stockholders who would be entitled to receive fractional shares
because they held a number of shares not evenly divisible by fifty
will receive, in lieu of such fractional shares, a cash amount
equal to the product of the fractional amount and $6.15. The total
number of shares of Aventine's Common Stock issued and outstanding
prior to the reverse split was 8,357,317 and the total number of
shares of Aventine's common stock issued and outstanding after the
reverse split is approximately167,146. In connection with the
reverse split, Aventine maintained the number of authorized shares
of Common Stock at 15 million and the par value of its Common Stock
at $.001 par value per share. The reverse stock split was
effectuated pursuant to the terms of the previously announced
Restructuring Agreement Aventine entered into on August 17, 2012
with 100% of its term loan lenders and certain of its existing
stockholders.
About Aventine Renewable Energy
Aventine is a leading producer of ethanol. Through our
production facilities, we market and distribute ethanol to many of
the leading energy companies in the U.S. In addition to producing
ethanol, our facilities also produce several by-products, such as
distillers grain, corn gluten meal and feed, corn germ and grain
distillers dried yeast, which generate revenue and allow us to help
offset a significant portion of our corn costs.
Forward Looking Statements
Certain information included in this press release may be deemed
to be "forward looking statements" within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. In some cases, you can identify these
statements by forward-looking words such as "may," "might," "will,"
"should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," and the negatives of these
terms and other comparable terminology. These forward-looking
statements, which are subject to known and unknown risks,
uncertainties and assumptions about us, include the anticipated
benefits of the Restructuring Agreement and the related
transactions, expected timing of the completion of the transactions
contemplated by the Restructuring Agreement and other aspects of
the proposed restructuring, and may include projections of our
future financial performance based on our growth strategies and
anticipated trends in our business. These statements are only
predictions based on our current expectations and projections about
future events. There are important factors that could cause our
actual results, level of activity, performance or achievements to
differ materially from the results, level of activity, performance
or achievements expressed or implied by the forward-looking
statements.
Some of the factors that may cause Aventine's actual results,
developments and business decisions to differ materially from those
contemplated by such forward looking statements include our ability
to reach agreement with our stakeholders on, and successfully
complete negotiations with respect to, definitive documents
effectuating the transactions contemplated by the Restructuring
Agreement and to satisfy all the conditions precedent to the
consummation of all the transactions contemplated by the
Restructuring Agreement in a timely manner, or at all, our ability
to obtain and maintain normal terms with vendors and service
providers, our ability to estimate allowed general unsecured
claims, unliquidated and contingent claims and future distributions
of securities and allocations of securities among various
categories of claim holders, our ability to maintain contracts that
are critical to our operations, our ability to attract and retain
customers, our ability to fund and execute our business plan and
any ethanol plant expansion or completion projects, our ability to
receive or renew permits to construct or commence operations of our
proposed capacity additions in a timely manner, or at all, laws,
tariffs, trade or other controls or enforcement practices
applicable to our operations, changes in weather and general
economic conditions, overcapacity within the ethanol, biodiesel and
petroleum refining industries, availability and costs of products
and raw materials, particularly corn, coal and natural gas and the
subsequent impact on margins, our ability to raise additional
capital and secure additional financing, our ability to service our
debt or comply with our debt covenants, our ability to attract,
motivate and retain key employees, liability resulting from actual
or potential future litigation or the outcome of any litigation
with respect to our auction rate securities or otherwise, and plant
shutdowns or disruptions. We disclaim any obligation or undertaking
to disseminate any updates or revisions to any forward looking
statements contained in this release or to reflect any change in
our expectations after the date of this release or any change in
events, conditions or circumstances on which any statement is based
except as required by law.
CONTACT: Aventine Renewable Energy Holdings, Inc.
Calvin Stewart
Chief Financial Officer
Ph: 214-451-6766
Fax: 214-451-6799
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