Courtesy of Benzinga.
Cereplast, Inc. (Nasdaq: CERP) today provided an update on the collection of its outstanding receivables. The Company has entered into an agreement with Singularis Solutions Pvt. Ltd. of Bangalore, India to distribute the Cereplast Hybrid Resins® products that are currently under the control of two large European customers. Under the terms of the agreement, Singularis Solutions will purchase and distribute up to $8.6 million of inventory between May 30, 2012 and August 30, 2012. Singularis Solutions will issue letters of credit to Cereplast in an aggregate amount of $8.6 million to secure their purchase. In addition Cereplast and Singularis are exploring additional opportunities for future business in the region.
Cereplast CEO and Chairman, Mr. Frederic Scheer, stated, “We are pleased to provide our shareholders with a positive update on the collection of our outstanding accounts receivables. Our task force has succeeded in expediting the sale of the Cereplast Hybrid Resins products in its efforts to transform our outstanding accounts receivables into cash.” Mr. Scheer continued, “The collection of outstanding monies is our highest priority but we are pleased to see that in doing so we have opened some significant opportunities that we are hopeful will bring new business to our Company in the near future outside of the Euro-Zone. This agreement also demonstrates a growing global demand for our resins, and we remain confident as ever in our technology and our ability to bring the Company back to a growth path toward profitability.”
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