Kior to Get $100 Million From Khosla and Gates for Biofuel Plant

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Kior Inc., operator of the first U.S. commercial-scale cellulosic biofuel plant, received commitments for $100 million in financing from Khosla Ventures LLC and Gates Ventures LLC to expand production at its Columbus, Mississippi, plant.

Kior issued $42.5 million in convertible debt to Khosla Ventures, which also agreed to purchase as much as $42.5 million of shares in the Pasadena, Texas-based biofuel company after it raises enough to build its Columbus II project, according to a statementBloomberg Terminal today. Gates Ventures bought a $7.5 million equity stake and will purchase an additional $7.5 in stock when the plant is fully funded.