Seeking Alpha

KiOR +50% after Khosla pledges financing up to $25M

  • KiOR (KIOR +49.8%) shares surge after the renewable fuels company secures up to $25M in financing from billionaire backer Vinod Khosla's KFT Trust.
  • KIOR had said it would be unable to fund its operations and meet its obligations if a deal was not finalized by April 1.
Comments (5)
  • T. A. "Ike" Kiefer
    , contributor
    Comments (125) | Send Message
    From the 8K filing:


    Khosla's "2014 Notes have a maturity date that may be elected by the Required Purchasers at any time after July 1, 2014"


    [Khosla's] 2014 Notes are secured by liens on fixtures, personal property and other assets of the Company . . . ."


    The Alberta Lenders [other debt holders] "modified the agreement to clarify that the secured obligations under the Loan and Security Agreement are subordinate to the Company’s obligations under [Khosla's] 2013 Notes (as defined below) and 2014 Notes."


    Translation: Khosla is positioning himself to be the senior debt holder and exclusively inherit all the assets after the default. He's changed tactics to essentially buying up the company's capital assets at a discount before the bankruptcy instead of after the bankruptcy like Range Fuels.
    1 Apr, 11:48 AM Reply Like
  • reirei
    , contributor
    Comment (1) | Send Message
    this is a good stock to long on! they are great biofuel startup
    1 Apr, 12:24 PM Reply Like
  • T. A. "Ike" Kiefer
    , contributor
    Comments (125) | Send Message
    I guess this was an April Fools joke.
    2 Apr, 12:11 PM Reply Like
  • schlussny
    , contributor
    Comment (1) | Send Message
    What are the milestones for the financing?
    1 Apr, 12:24 PM Reply Like
  • Sidi Carnot
    , contributor
    Comments (13) | Send Message
    If they are so great then why are they de facto BUST. When, not, if they go bust in about six months, all Khosla will have is a pile of scrap. The process is not worth a row of beans and the smart money would be to short the stock and wait for it to go BUST.


    My advice. If you do not understand fuel chemistry then put you money on the horses, as you would at least have a chance of winning. Otherwise you deserve to loose your shirt because you have been warned. Fools and their money are soon parted.
    1 Apr, 01:55 PM Reply Like
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