Pacific Ethanol Closes $40 Million Equity Investment

Sacramento, California, —Pacific Ethanol, Inc. (NASDAQ GM: PEIX) today announced that it has closed the transactions contemplated under its Securities Purchase Agreement dated March 18, 2008 with Lyles United, LLC. The Company sold (i) 2,051,282 shares of its Series B Cumulative Convertible Preferred Stock, all of which are initially convertible into an aggregate of 6,153,846 shares of the Company’s common stock based on an initial three-for-one conversion ratio, and (ii) a warrant to purchase an aggregate of 3,076,923 shares of the Company’s common stock at an exercise price of $7.00 per share, for an aggregate purchase price of $40 million. In addition, the Company received waivers from its lenders as to defaults under its Credit Agreement. Link. Chart.