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9. Subsequent Events
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
9. Subsequent Events

Subordinated Debt Refinancing

 

On July 1, 2017, the Subordinated Notes with two accredited investors were amended to extend the maturity date until the earlier of (i) December 31, 2017; (ii) completion of an equity financing by AAFK or Aemetis in an amount of not less than $25.0 million; or (iii) after the occurrence of an Event of Default, including failure to pay interest or principal when due and breaches of note covenants.  A 10% cash extension fee was paid by adding the fee to the balance of the new Note and warrants to purchase 113 thousand shares of common stock were granted with a term of two years and an exercise price of $0.01 per share.  Accounting of the July 1, 2017 amendments and the refinancing terms of the Notes will be evaluated in accordance with ASC 470-50 Debt – Modification and Extinguishment.

 

Goodland Transaction

 

On July 10, 2017, Aemetis, Inc., and its subsidiary Aemetis Advanced Products Keyes, Inc. (“AAPK” and together with the Company, the “Guarantors”) entered into the revolving notes with Goodland Advanced Fuels, Inc. in the amount of $5.6 million, proceeds of which were used for repayment of the January 2017 Note, repayment of the April 2017 Note and working capital funding.  The interest on these notes accrues at the rate of 12% per annum.  Under the terms of this agreement, the balance of $1.2 million is available to draw.  The maturity date is July 10, 2019, which may be extended for up to two additional one-year periods upon prior written notice and upon the satisfaction of certain conditions and the payment of a renewal fee.  Additionally, the Company received an option to purchase all of the capital stock of Goodland Advanced Fuels, Inc., for an aggregate purchase price of $0.01 per share. As consideration for the facility, Aemetis, Inc., and Aemetis Advanced Products Keyes, Inc. provided certain limited guaranties for repayment of loans and pledged stock in Aemetis Advanced Products Keyes, Inc. in favor of Third Eye Capital Corporation, as administrative agent and collateral agent for and on behalf of Goodland Advanced Fuels, Inc. Aemetis further provided an option to the owner of Goodland Advanced Fuels, Inc.,  for the issuance of 100,000 shares of common stock pursuant to full vesting of the shares on January 1, 2018.

 

Research and Development Lab Relocation

 

During July 2017, the research lab at College Park, Maryland was closed and is being relocated to a new location in Minneapolis, Minnesota.