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Aventine Renewable Energy Holdings Inc. (AVRW) Stock soars in Today’s Mid-day Session

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The share price of Aventine Renewable Energy Holdings Inc. (OTCPK: AVRW), a Texas based company involved in producing and marketing fuel-grade ethanol to energy and trading companies in the United States, soars drastically by the mid half of the session.

The stock has been trading so far for the day in the range of $1.45 and $1.77. It opened today at $1.45 and at the last check, it was trading at $1.77, which is a 26.43% increase from its previous close of $1.40. It had been between $0.50 and $10.5 in the previous 52 weeks. The company’s total market cap stands at $14.77 million and its latest recorded EPS is $-4.9640.

AVRW opened today at a price much above its previous day close price and increased steeply to its intraday high of $1.77 within few minutes of market open. It stabilized at the same price till the mid half of the day.

It had also traded heavily today with the trading volume so far for the day at 709 shares, compared to its Average 5 day Volume of 700 shares and its daily average volume of 558 shares.

The company had recently approved for an amendment in Revolving Credit Agreement with Wells Fargo Capital Finance LLC.

As per the Management, it amends the Revolving Credit Agreement to change the date for cash collateralization of the undrawn amount of Aventine’s outstanding letters of credit from September 7, 2012 to September 30, 2012 and the forbearance agreement to extend the date of the forbearance period from the earlier of September 30, 2012 or the occurrence of a further event of default under the Revolving Credit Agreement or the occurrence of certain other events specified in the forbearance agreement.

According to the recent voting by shareholders, 60% of them including the board of directors support for the loan restructuring. Thus it has decided to restructure 100% of its term loan and would convert into newly issued common equity of the Company on a fully diluted basis.

This restructuring agreement will help the company in reducing its existing debt of $135 million and improve its liquidity. It is expected to be completed by end of the 3rd quarter.

The company’s CEO, John Castle quoted that the Industry as a whole is facing difficult time and he promised that the management will strive to improve the company’s financial position.

Posted by on Wednesday, September 12th, 2012. Filed under Internet, Technology. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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