Aemetis Inc (NASDAQ: AMTX) is a stock that we brought to the attention of the CNA Finance audience yesterday as the company announced that it had completed a demonstration unit that had been operational for more than 120 continuous days. As a result of the news, the stock flew dramatically in the market yesterday. However, the excitement seems to be far from over. Today, we’ll recap the news, what we’re seeing in the market as the gains continue, and what we’ll be watching for with regard to AMTX ahead.
AMTX News Yesterday
As mentioned above, yesterday proved to be an overwhelmingly strong day for Aemetis after the company announced the completion of a demonstration unit. In the release issued yesterday morning, the company announced that the demonstration unit had been in operation for more than 120 continuous days with 94% uptime!
That’s incredible news. After all, this means that AMTX has met the requirements for the USDA 9003 Biorefinery Assistance Program guaranteed loan. Ultimately, the news that was released means that not only has AMTX provided further validation to their concepts and work, but the company has als0 unlocked the door to further financing.
With the help of the funding, the company will be able to continue moving forward with the Riverbank plant, a plant that is expected to produce around 12 million gallons per year and find its way to operational status in 2019. Not to mention, there’s already a 20-year feedstock agreement in place and a 55-year lease signed for the plant. With yesterday’s announcement, the company is simply crossing its T’s! In a statement, Eric McAfee, Chairman and CEO at AMTX, had the following to offer:
The completion of the successful operation of the demonstrated unit is the final technology step in securing a USDA loan guarantee for the $158 million cellulosic ethanol plant Aemetis is building in Riverbank, California… We believe that the integration of these technologies, and the high yields generated by the unit, demonstrate that Aemetis can successfully produce high value cellulosic ethanol from the 1.6 million tons of waste orchard wood and other renewable feedstocks in the Central Valley. With plans to expand the Riverbank plant and construct additional plants, Aemetis plans to be a leader in supplying California’s low carbon fuels mandates.
What We’re Seeing From The Stock Today
As mentioned above, yesterday proved to be an amazing day for Aemetis, and if you followed our pre-market news, you may have cashed in on the incredible gains. However, the gains aren’t over yet. Once again, the stock is making yet another run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:52), AMTX is trading at $1.24 per share after a gain of $0.19 per share (17.62%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMTX. In particular, we’re interested in the company’s continued work at the Riverbank plan. Not to mention, Kenny Soulstring, Chief Strategic Analyst here at CNA Finance, will be releasing a full report surrounding Aemetis next week. So, keep your eyes peeled for that. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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