By: Frank Antosiewicz
April 10, 2014
Casey Container Corp. continues to try to build on its plan to offer biodegradable plastic containers, announcing that it has signed a $10 million stock purchase agreement with an investment group that wants to remain anonymous until the deal closes.
Casey Container of Paradise Valley, Ariz., said that its board of directors signed an agreement in which it will gain $5 million in equity for 40 percent of issued and outstanding common shares of Casey. The deal also includes a $5 million long-term note, which carries an interest rate of 6 percent. The investment firm would also gain one seat on the Casey board of directors.
The closing is expected to occur between mid-May and mid-June.
Casey Container is a company that has taken steps to design and custom manufacture biodegradable PET preform bottles for the water, beverage and container markets. It has a license from BioTec Environmental LLC of Albuquerque, N.M., to use the EcoPure additive to help enhance the biodegradability of the preforms.
The company did not return a call for comment.
According to its latest Security and Exchange Commission filing, the company had no sales revenue in 2012 or 2013, but is continuing its quest to raise capital to buy machinery and lease a facility.
In September 2011, Casey and Crown Hospitality Group LLC of Schaumburg, Ill., announced that it had a $4 million agreement for equity funding. At that time, the company was looking in Florida near Tampa and St. Petersburg for a manufacturing site.