Money returned to local investors
SIKESTON -- A missed deadline means money put up for a proposed ethanol plant in Sikeston must be returned to investors.
"The equity monies that were invested in this offering are in the process of being returned to investors with interest," said David Herbst, chairman of Bootheel Agri-Energy LLC. "Investors can expect to receive their initial equity investment within the next 10 days with the interest to follow within the next 30 days."
Investments offerings of this type include target dates that must be met, Herbst explained.
"By that deadline you have to meet certain conditions pursuant to the offering," he said. "One of those conditions was a commitment letter from the lender which was not achieved simply because of concerns in the construction contract."
Money for the construction of the ethanol plant was to have included a down payment by investors with the balance being financed.
"The offering that we had open expired on Jan. 24," Herbst said. "Up until the 22nd, everything as far as the contractor and lender were looking very positive but in those last couple of days there were some issues that came up within the language of the construction contact that the lender just couldn't resolve in a matter of two days in order for us to meet our deadline of the 24th."
Due to U.S. Securities and Exchange Commission regulations, Bootheel Agri-
Energy officials are unable to comment on how this affects the possibility of an ethanol plant being built in Sikeston.
"There are other options that exist and the board is in the process right now of exploring those options," Herbst said.