Aemetis expects to finalise Edeniq acquisition in June

Aemetis, a US-based advanced fuels and renewable chemicals company, has confirmed that it expects to finalise its acquisition of Edeniq, a US cellulosic ethanol technology company, in June.

On 5 May, 2016, Aemetis entered into a definitive agreement to acquire Edeniq.  Edeniq has developed patented innovations that unlock cellulosic and starch sugars through a combination of patented mechanical and biological processes.

Net loss reduction

The firm announced the news as it published its first quarter 2016 results. Aemetis reported that it had reduced its losses to $5.1m (€4.5m) in the first quarter of 2016, compared to a net loss of $8.6 million for the first quarter of 2015.

Revenues were $33.3 million for the first quarter of 2016, compared to $34.7 million for the first quarter of 2015. The decline in revenue was primarily attributable to decreases in ethanol and wet distiller’s grain average selling prices and volumes.

Gross margin for the first quarter of 2016 was $2.1 million, compared to negative gross margin of $228 thousand during the first quarter of 2015.  The increase in gross margin was primarily attributable to the lower price of feedstock compared to the same period of the prior year.

“The overall ethanol market improvement we saw at the end of the first quarter, combined with the pending acquisition of Edeniq, positions Aemetis for positive margin growth in the second half of 2016,” said Eric McAfee, chairman and CEO of Aemetis.