The loan agreement gave Cereplast an initial sum of $2.5 million in December 2010, with the additional $2.5 million to be funded during the first quarter of 2011 pending attaining revenue targets for January and February of 2011. Each installment has a term of 39 months from the date of funding and carries an interest rate of 12%.
Frederic Scheer, chairman and CEO of Cereplast, said, "We have reached a critical inflection point as we are now in a position to support aggressive growth and expansion while simultaneously having the ability to handle a critical mass of demand. I am confident that Cereplast will see further accomplishments in the first quarter of 2011 as we continue to forge forward with expanding current contracts and securing new agreements from product distributors and manufacturers across the globe."
Cereplast is now offering resins to meet the demands of a variety of customers and for us in all major converting processes, including injection molding, thermoforming, blowmolding, and extrusion. Cereplast Compostables are resins suited for single-use applications where high bio-based content and compostability are wanted, especially in the food service sector. 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.
During 2010, Cereplast was very active, starting up additional production shifts at its plant in Indiana, structuring its product lines around the Sustainables and Compostables brands, and signing distribution agreements with A. Schulman for Europe, CRS Technologies for Malaysia, and Ashland for North America. —PlasticsToday Staff