CUPERTINO, CA - Aemetis, Inc. (NASDAQ: AMTX), a company specializing in renewable natural gas (RNG) and renewable fuels, has received approval for a $200 million investment under the EB-5 program. This funding is earmarked for several projects, including the Riverbank sustainable aviation fuel (SAF) production plant and a dairy RNG initiative.
The U.S. Citizenship and Immigration Services (USCIS) approved the investment for Aemetis' Riverbank plant, which has been granted the Authority to Construct air permits and is expected to produce 78 million gallons of SAF yearly. Aemetis has secured over $3 billion in contracts to supply airlines with SAF, highlighting the growing demand for low-carbon aviation fuel.
The EB-5 funding is part of a financial strategy that includes 20-year USDA-guaranteed loans, supporting the company's expansion plans outlined in the Aemetis Five-Year Plan. The investment will also contribute to energy efficiency upgrades at the Keyes ethanol plant.
The USCIS determination allows for 245 investors to contribute a total of $200 million to Advanced Bioenergy II, a new commercial enterprise that will fund Aemetis Advanced Products Keyes, the job-creating entity.
The entity plans to enhance the existing Keyes ethanol plant's production and energy efficiency, including the installation of solar panels and the use of renewable sources for biofuel production. Additionally, the funding will support the development of a dairy RNG system, a biofuel production facility for SAF and renewable diesel, and a carbon capture well.
Both the Aemetis ethanol plant and the Riverbank Industrial Complex, the project's primary locations, are situated in areas of high unemployment. To date, eight investors have contributed $4 million, with 245 additional investors now approved to invest at $800,000 each, totaling $200 million under the EB-5 program.
The information in this article is based on a press release.
InvestingPro Insights
In light of Aemetis, Inc.'s (NASDAQ: AMTX) recent approval for a $200 million investment under the EB-5 program, several financial indicators from InvestingPro provide further insight into the company's current market standing. Aemetis operates with a significant debt burden, which is an essential factor for investors to consider given the company's ambitious expansion plans. Analysts anticipate sales growth in the current year, which could be bolstered by the company's projects in sustainable aviation fuel (SAF) and dairy renewable natural gas (RNG).
From a financial perspective, Aemetis has a market capitalization of $183.31 million, indicating its size within the renewable energy sector. The company's price-to-earnings (P/E) ratio stands at -3.82, reflecting that the company is not currently profitable. In addition, the gross profit margin is relatively low at 1.08%, based on the last twelve months as of Q4 2023, which may be a point of concern for potential investors evaluating the company's operational efficiency.
Furthermore, InvestingPro Tips suggest that Aemetis is quickly burning through cash and that its short-term obligations exceed its liquid assets, which could impact its financial flexibility. Despite the challenges, the company has seen a significant return of 14.06% over the last week, although it has experienced a price fall of 32.03% over the last three months.
Investors interested in a deeper analysis can find additional InvestingPro Tips for Aemetis at https://www.investing.com/pro/AMTX. There are more tips available, including insights on valuation, profitability, and stock price performance. To access these insights and make informed investment decisions, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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