Marrone Bio Innovations, Inc. announced that it has completed a $40 million loan financing.
The financing involves the Company's issuance to the lenders of Senior Secured Promissory Notes in the aggregate principal amount of $40,000,000, accruing interest at a rate of 8% per annum, with $10 million payable 3 years from the closing, $10 million payable 4 years from the closing, and $20 million due 5 years from the closing.
The Company also issued to the lenders warrants to purchase up to an aggregate of 4,000,000 shares of Common Stock at an exercise price equal to $1.91 per share (subject to certain limitations on exercisability). The Company currently intends to use the proceeds of the loan for working capital and other general corporate purposes.
Pam Marrone, Chief Executive Officer, said, "We are grateful for the support of our lenders in recognizing the long term potential of the Company."
The Company also announced that James Iademarco, the Company's President and Chief Operating Officer since January 2015, has elected to resign effective August 31st, 2015.
To assist with the transition of various pending matters, Mr. Iademarco has agreed to remain available to advise the Company in a consulting capacity for an additional period of up to 90 days. Elin Miller, Chairman of the Board, said, "We very much appreciate James' contributions to the Company, and we wish him the best in his future business endeavors."
Mr. Iademarco added, "I am happy to have been able to assist the Company during a challenging period for the Company, and I am proud of our team members who have committed themselves to strengthening the Company's business."
The Company further announced that, as anticipated, it has received a letter from the Listing Qualifications Staff of The NASDAQ Stock Market LLC notifying the Company of its continued noncompliance with NASDAQ Listing Rule 5250(c)(1) as a result of the Company's failure to timely file its Quarterly Report on Form 10-Q for the three months ended June 30, 2015 on August 15, 2015.
As reported in the Company's Notification of Late Filing on Form 12b-25 filed with the Securities and Exchange Commission on August 17, 2015, the Form 10-Q will not be filed with the SEC until after the completion of Company management's evaluation of the necessity, nature and scope of any restatements to its previously filed financial statements.
The Company currently expects that it will be able to file all delinquent reports, including the Form 10-Q, prior the November 9, 2015 expiration of the stay on suspension of trading granted by NASDAQ for the Company to regain compliance with NASDAQ's filing requirement.
For more information
Marrone Bio Innovations
1540 Drew Ave Davis CA 95618
T: 1.530.750.2800 Toll Free: 1.877.664.4476