In July 2012, Third Eye lent around $40 million to Aemetis, Inc (NASDAQ:AMTX) by means of loans, notes and a revolving credit facility. The “stated” interest rates have been as high as 17%, but due to a creative variety of fees, the real rate of interest has approached 100% per year. Aemetis clearly had no ability to repay these debts. In fact, it could not ever even service the interest alone. Within less than 6 months, the company was already in default. As a result, in October of 2012, Aemetis and Third Eye entered into Waiver and Amendment #1. This…
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- The "vig" was quickly compounding at a truly unsustainable rate.
- As a result of the heavy warrants and shares being issued, Third Eye quickly owned over 17% of the entire company!
- What happened with earnings? Why is the stock falling?
- In reality, the results are actually a bit of a disappointment.
- What about "alternative" financing sources?
- Complications for an equity offering - accounting issues
- But, in fact, there is a much larger problem looming for Aemetis.
- But here is where it becomes much more problematic.
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