Electronics Retailer to Make Ethanol Investment
REX Stores, usually known for selling televisions, stereos, and appliances is buying into ethanol.
According to this story posted on BizJournals.com, REX will invest between $35 million and $62 million in ethanol-producer One Earth Energy, which plans to start to build a 100-million-gallon-a-year plant this year in Gibson City, Illinois:
This purchase will allow Rex to secure a majority ownership interest with Earth Energy. However, this percentage will be determined based upon the participation by other investors in the offering.
Additionally, Rex has entered into an agreement with One Earth to fund up to an additional $6 million in interim financing in the form of secured debt, bearing an interest rate of 9 percent annually. The interim funding is intended to allow One Earth to proceed with development and construction schedule for ethanol production facility.