SUBSEQUENT EVENTS |
6 Months Ended |
|---|---|
Jun. 30, 2022 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS |
NOTE L - SUBSEQUENT EVENTS On August 5, 2022, certain subsidiaries of the Company entered into Amendment No. 9 to the senior secured term loan Credit Agreement to, among other things, increase the Tranche B Commitments thereunder by $60 million,
extend the start date of the Bakersfield Renewable Fuels Refinery to
March 31, 2023, and implement certain other commercial arrangements as described therein. Existing defaults and potential events of defaults under the Credit Agreement
, if any, were also waived by the lenders in connection with the effectiveness of Amendment No. 9. As payment of an amendment and upsize premium, the Company issued to the lenders warrants to purchase up to 7,468,929 shares of the Company’s common stock, exercisable until December 23, 2028 at an exercise price of $2.25 per share.In connection with the transactions contemplated by Amendment No. 9, the Company also entered into a transaction agreement (the “Transaction Agreement”) with ExxonMobil Renewables and ExxonMobil, pursuant to which, among other things, certain subsidiaries of the Company and EMOC entered into amendments to the Company’s Product Off-Take Agreement and Term Purchase Agreement in order to extend the initial terms thereof to
66
months, to increase certain committed volumes under the Product Off-Take Agreement from 105 million gallons per year (“MGPY”) to 135
MGPY, and to implement certain other commercial arrangements between the parties as described therein. Pursuant to the Transaction Agreement, the Company issued to ExxonMobil Renewables warrants to purchase up to 2,489,643 shares of the Company’s common stock, exercisable until December 23, 2028 at an exercise price of $2.25 per share.
The Company also agreed to amend certain warrants previously issued to ExxonMobil Renewables on February 23, 2022 to extend the exercise period thereof to December 23, 2028, and to reduce the exercise price of certain warrants to purchase 6.5 million shares of the Company’s common stock to $2.25 per share. The Company also agreed to amend the warrant to purchase 33%
of the issued and outstanding equity of Sustainable Oils, Inc. previously issued to ExxonMobil Renewables in order to reduce the exercise price to
$1 million in the aggregate. |