Item 1.01.
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Entry into a Material Definitive Agreement.
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On September
19, 2019, Pacific Ethanol, Inc. (the “Company”) entered into an At Market Issuance Sales Agreement (the
“Sales Agreement”) with H.C. Wainwright & Co., LLC (“Wainwright” or the “Sales Agent”). Pursuant
to the Sales Agreement, Wainwright will act as the Company’s sales agent with respect to an offering and sale, at any
time and from time to time, of the Company’s common stock, par value $0.001 per share (the “Shares”). The
Company has authorized the sale, at its discretion, of Shares in an aggregate offering amount up to $13,162,213 under the
Sales Agreement. Sales of the Shares, if any, will be made by any method permitted by law deemed to be an “at the
market offering” as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities
Act”), including without limitation sales made directly on or through The Nasdaq Capital Market.
The Shares will
be sold and issued pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-217323), which was
previously declared effective by the Securities and Exchange Commission, and the related base prospectus and one or more
prospectus supplements.
The Company or the Sales Agent, under certain circumstances and upon notice to the other, may suspend the offering of the Shares under the Sales Agreement.
The offering of the Shares pursuant to the Sales Agreement will terminate upon the sale of Shares in an aggregate offering amount
equal to $13,162,213, or sooner if either the Company or the Sales Agent terminate the Sales Agreement.
The Company will pay the
Sales Agent a commission of up to 3.0% of the gross proceeds from any sale of the Shares sold pursuant to the Sales Agreement
and will reimburse the Sales Agent for certain expenses incurred in connection with their services under the Sales Agreement,
including up to $35,000 for legal expenses.
The Company made certain
customary representations, warranties and covenants in the Sales Agreement concerning the Company and its subsidiaries and the
registration statement, prospectus, prospectus supplement and other documents and filings relating to the offering of the Shares.
In addition, the Company has agreed to indemnify the Sales Agent against certain liabilities, including liabilities under the
Securities Act.
The foregoing description
of the Sales Agreement is qualified in its entirety by reference to that agreement, a copy of which is filed as Exhibit 10.1 to
this Current Report on Form 8-K and is incorporated herein by reference.
This Current Report on
Form 8-K, including the exhibits filed herewith, shall not constitute an offer to sell or the solicitation of an offer to buy the
securities discussed herein, nor shall there be any offer, solicitation or sale of the securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.