KiOR to be delisted from NASDAQ

By Erin Voegele | October 29, 2014

Documents filed with the U.S. Securities and Exchange Commission on Oct. 27 indicate KiOR Inc. will be delisted from the NASDAQ Stock Market LLC, effective Nov. 6.

The company received a notification of deficiency from the listings qualifications department of the NASDAQ Stock Market on Sept. 12 based on its failure to pay required fees. The trading of KiOR’s stock was suspended on Sept. 23. The form filed on Oct. 27 notes that KiOR did not appeal the decision.

KiOR was informed in May that it would be subject to delisting upon failure to regain compliance with the minimum price bid requirement of $1 per share, the minimum market value of listed securities of $50 million, and the minimum market value of publicly held shares of $15 million.

The company has experienced financial and operational difficulties during the past year. In early 2014, KiOR announced that it had suspended optimization work at its Columbus, Mississippi, plant and idled the facility.

In July, the company entered into a protective advance loan and security agreement, referred to as the protective advance agreement, with Vinod Khosla’s KFT Trust. Under the agreement, KiOR said the lenders have agreed to make protective advance loans in an aggregate principal amount of up to $15 million until the maturity date, which the filing indicates is Oct. 31. According to the filing, the protective advance agreement is intended to replace the company’s senior secured promissory note and warrant purchase agreement with Khosla. Under that agreement, originally announced in April, Khosla agreed to invest up to $25 million in monthly tranches of no more than $5 million per month. The company has also  announced a forbearance agreement with the Mississippi Development Authority in connection to a 2011 loan agreement with the state of Mississippi.

According to information released by KiOR earlier this year, the company was expected to be able to fund its operations and meet its obligations through approximately Sept. 30, but would need to raise additional funds to continue operations after September. If the company is unable to raise funds, it has indicated it will likely be forced to seek voluntary bankruptcy protection.

In July, KiOR announced it has engaged Guggenheim Securities LLC as its financial advisor and investment banker to provide financial advisory and investment banking services to assist in reviewing and evaluating various financing, transactional and strategic alternatives, including a possible merger, restructuring or sale of the company.