Energy crop developer Ceres Inc. will receive nearly $39 million in financing from the Brazilian government to expand its product development program, the company announced Monday.
The Thousand Oaks agricultural biotech will receive $34 million in the form of a four-year credit line through the PAISS Agricola initiative promoting agricultural innovations. Ceres also was given a $4.5 million grant it will not have to pay back.
The company has operations in Brazil and is working with farmers to plant a proprietary version of sweet sorghum as an energy crop. The company will use the funding to further advance its work with sorghum, as well as with sugarcane.
Chief Financial Officer Paul Kuc said the company was pleased to receive an endorsement from Brazil on using sorghum and sugarcane to increase ethanol production.
“The funding will allow us to accelerate our product development programs in Brazil and will extend our capital resources as we continue to develop the commercial markets for our technology and products,” Kuc said in a prepared statement.
Shares closed down a penny, or about 2 percent, to $0.70 on the Nasdaq.