Proceeds to fund biodegradable plastics production facility in Tampa
New York, July 5 - Casey Container Corp. said it has agreed a $4 million equity funding agreement with Crown Hospitality Group, LLC, an affiliate of CEG Fund Ltd.
The financing will be released in tranches over a year. Casey expects to receive the first tranche of $400,000 this month.
Crown will receive restricted common shares equal to the total number of shares outstanding as of July 1.
Proceeds will be used to build the company's first biodegradable PET plastics production facility near Tampa, Fla. Casey expects to start shipping biodegradable preforms in late September or early October.
"We've experienced a large increase in website traffic due to our expanded website and SEO [search-engine optimization] efforts, which has stimulated promising discussions with many prospective domestic and international customers interested in ordering performs," said Martin R. Nason, president and chief executive officer, in a news release.
"We're excited about Crown's decision to directly invest in Casey Container Corp. and partner with us to accelerate our expansion in the U.S. alongside the natural expansion internationally with CEG.
"Although there is no guarantee or assurance a definitive agreement for the international factories will be signed, it confirms that Crown recognizes the need for viable PET biodegradable plastics solutions and underscores their confidence that Casey will be a successful company in providing green and environmentally friendly packaging and biodegradable plastics solutions worldwide."
Casey Container is a Scottsdale, Ariz., designer and custom manufacturer of biodegradable PET, HDPE and other plastic polymer preforms, bottles and containers for use in the bottled water, beverage and consumer products industries.
| Issuer: | Casey Container Corp.
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| Issue: | Equity funding agreement
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| Amount: | $4 million
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| Tenor: | One year
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| Announcement date: | July 5
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| Stock symbol: | OTCBB: CSEY
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| Stock price: | $0.149 at close on July 1
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| Market capitalization: | $8.73 million
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