most likely it's has been sold. Khosla doesn't need to fund it any further if that is the case. He owns 64 percent and most likely this is what is happening. This is called the quiet period.
See, told you something was up. They didn't moved their annual meeting back twice for nothing. Something is up.
Khosla already provided $10M in April and May, so the fact that Khosla decrease the funding from $25M to $10M means he is out. He also purchase Protective Notes. Looks like he threw in the towel as well. Stock could drop a lot tomorrow. No more funding and in technical default with the State.
Khosla is no longer providing any more money. They are in big trouble now.
On July 3, 2014, the Parties entered into Amendment No. 1 to the 2014 Note Purchase Agreement (“Amendment No. 1”). The Original Note Purchase Agreement as amended is referred to as the “2014 Note Purchase Agreement.” Amendment No. 1 provides for, among other things, (i) the sale and issuance of Protective Advance Notes (as defined below) and (ii) the decrease in the maximum principal amount of Notes outstanding permitted at any one time (other than Protective Advance Notes) from $25 million to $10 million in the aggregate. “Protective Advance Notes” are senior secured promissory notes that may be purchased at the sole discretion of the 2014 Note Purchaser in the event the Company requires liquidity funding to preserve, protect, prepare for sale or dispose of the collateral subject to the 2014 Note Purchase Agreement (the “Collateral”) or to enhance the likelihood and maximize the amount of repayment of the secured obligations under the 2014 Note Purchase Agreement (the “Secured Obligations”).
On April 30, 2014, KiOR, Inc. ("we," "our" or the "Company") received two notifications of deficiency from the Listing Qualifications Department of The NASDAQ Stock Market LLC ("NASDAQ") indicating that (1) based on the Company's closing bid price for its Class A common stock during the last 30 consecutive business days, the Company does not comply with the minimum bid price requirement of $1.00 per share, as set forth in NASDAQ Listing Rule 5450(a)(1) and (2) for the past 30 consecutive business days the Company did not maintain a minimum market value of listed securities ("MVLS") of $50 million, as set forth in NASDAQ Listing Rule 5450(b)(2)(A). On May 5, 2014, the Company received a notification of deficiency from NASDAQ indicating that for the prior 30 consecutive business days the Company did not maintain a minimum market value of publicly held shares ("MVPHS") of $15 million, as set forth in NASDAQ Listing Rule 5450(b)(2)(C). The notifications have no immediate effect on the listing of the Company's Class A common stock on The NASDAQ Global Select Market.
Closing Bid Price
In accordance with NASDAQ Listing Rule 5810(c)(3)(A), the Company has a grace period of 180 calendar days, or until October 27, 2014, to regain compliance with the minimum closing price requirement for continued listing. In order to regain compliance, the minimum closing price per share of the Company's Class A common stock must be at least $1.00 for a minimum of ten consecutive business days during the 180-day grace period. Copy of notice
Meanwhile the Associated Press reported that the state gave Kior a break:
Mississippi will give struggling biofuel company KiOR another four months to raise money and resume repaying its $69.4 million debt to the state, passing up a chance to force the company into bankruptcy and seize its Columbus refinery, a state official said Thursday.
The state negotiated a short-term forbearance agreement with KiOR under which the company will pay Mississippi $250,000, and the state will agree not to press its claims for 120 days, Mississippi Development Authority spokesman Jeff Rent said in a statement he emailed to The Associated Press on Thursday.
Rent says the $250,000 is in addition to what KiOR already owes the state.....
KiOR is based in Pasadena, Texas. The company owed Mississippi a nearly $1.9 million payment June 30 on what was originally a $75 million, no-interest loan. Kior said if it defaults, it could face demands from other lenders to immediately repay the entire $287 million that it owes....
Apparently it looks like the Kior lost its lifeline as the AP also reported:
Mississippi relented after KiOR's longtime financier, Vinod Khosla, apparently refused to lend the company any more money. KiOR signed an agreement March 31 to borrow up to $25 million from KFT Trust, an entity controlled by Khosla, the billionaire co-founder of computer firm Sun Microsystems. KiOR said the money would be drawn in installments and Khosla could stop lending if the company didn't reach "certain performance milestones." Rest of article
But don't worry. If KiOR does not repay the loan, Mississippi gets to foreclose and take possession of an experimental plant in Columbus. Surely someone will want to buy a plant that can covert wood chips to fuel for $60-70 million? If not, can the state just donate it to Mississippi State?
Senatobia, KiOR, one day Kemper. Thank you, Haley and the legislature.
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Agree with you 100%. They should have reduced his pay by 85-90% before they laid off those 17 employees. This company had so much potential and i still believe they do, but he managed to run this company in the ground. One thing is bothering me is, they are keeping us on the dark. I am hoping for some kind of miracle like PLUG. My guess is something is going on, otherwise the sp would have dropped more. I hope we longs get rewarded for our patience.
These are my opinions.
company always wants to keep everyone in the dark. now they want us to vote to keep board members, to compensate executives, approve issuance of warrants,approve senior secured convertible promissory notes,and approve stock purchase agreement with gates ventures. now i have been watching for awhile and i may have missed something but i dont recall management putting out information about most of that. i dont see where i have anything to loose by voting against every item but particularly against fred cannon who has no place on the board of directors.
Didn't hear any news about additional funding and it's the last day of the month. I expected kior to crash today without any news but only down 8%. Tomorrow may be different.
A vote against a short seller who bet the disaster. They can continue voting, no problema. ;)
Point well taken. lolli...no substitute for doing ones own due diligence, I guess. Most people would never take the time to research any stock they throw their $$$ at, so it always will get back to making your own decision and realizing that there will always be those pumping and bashing and the occasional balanced opinion.