Yield10 Bioscience, Marathon Petroleum Sign LOI for Potential Investment in Camelina Feedstock Oil for Renewable Fuels
May 2, 2023 Yield10 Bioscience, Inc., an agricultural bioscience company, has announced that it has signed a non-binding Letter of Intent (“LOI”) with Marathon Petroleum Corp. for a potential investment and offtake agreement for low-carbon intensity Camelina feedstock oil for use in renewable fuels production. Marathon is a leading, integrated downstream energy company in the U.S.
“Yield10 continues to execute on our commercialization plan to supply low-carbon intensity Camelina feedstock oil to the growing North American biofuel market through a network of supply chain alliances,” said Oliver Peoples, Ph.D., President and Chief Executive Officer of Yield10 Bioscience. “We look forward to working closely with Marathon’s team to finalize a definitive investment and offtake agreement as the basis for a strategic alliance in biofuels over the long term.”
In connection with the execution of the LOI, the Company also sold and issued a senior unsecured convertible promissory note to an affiliate of Marathon in the original principal amount of $1.0 million (the “Convertible Note”), which is convertible into shares of the Company’s common stock or other Qualified Securities (as defined in the Convertible Note), subject to certain conditions and limitations set forth in the Convertible Note. The Company plans to use the net proceeds from the Convertible Note for working capital and general corporate purposes. Additional information regarding the Convertible Note will be included in a Form 8-K to be filed by the Company with the Securities and Exchange Commission.
The securities issued and sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any states’ securities laws and may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities of the Company in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
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