Alto Ingredients, Inc. Receives $22.7 Million Grant from USDA Program

Rhea-AI Summary

Alto Ingredients, Inc. (NASDAQ: ALTO) has secured a $22.7 million cash grant from the USDA’s Biofuel Producer Program, established under the CARES Act. This funding aims to assist biofuel producers affected by the COVID-19 pandemic. CEO Mike Kandris stated that the grant will be allocated for facility maintenance, equipment upgrades, and operational improvements, aimed at enhancing efficiency and reliability. The strategic initiatives are expected to drive growth and profitability for the company.

Positive

• Secured a $22.7 million cash grant from USDA.
• Funding allocated for facility maintenance and improvements.
• Strategic plan includes upgrading equipment to enhance efficiency.

Negative

• None.

SACRAMENTO, Calif., June 16, 2022 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols and essential ingredients, announced today that it has received a $22.7 million cash grant from the USDA’s Biofuel Producer Program. The Program was created as part of the CARES Act, which provided $700 million to support biofuel producers who experienced market losses due to the COVID-19 pandemic.

Mike Kandris, Alto Ingredients’ CEO, said, “The grant we received from the Biofuels Producer Program will be used to support ongoing facility maintenance and improvements. Our strategic plan includes upgrading equipment and operating systems to increase efficiency and plant reliability, expanding our corn storage capacity, broadening our distribution, and installing high protein harvesting technology. In addition to fueling growth, these capital projects are expected to yield additional profitability.”

About Alto Ingredients, Inc.
Alto Ingredients, Inc. (ALTO) is a leading producer and distributor of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information, please visit www.altoingredients.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ expected uses of funds received under the USDA’s Biofuel Producer Program and the effects of, including the financial results deriving from, Alto Ingredients’ capital improvement projects; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business. These factors include, among others, Alto Ingredients’ ability to timely and effectively complete its capital improvement and other projects and initiatives, and to operate them as expected; adverse economic and market conditions, including for specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; and the effects – both positive and negative – of the coronavirus pandemic and its resurgence or abatement. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the specialty alcohol production and marketing industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2022.

Media Contact:                 
Bryon McGregor, Alto Ingredients, Inc., 916-403-2768
mediarelations@altoingredients.com

Company IR Contact:                 
Michael Kramer, Alto Ingredients, Inc., 916-403-2755
investorrelations@altoingredients.com

IR Agency Contact:
Kirsten Chapman, LHA Investor Relations, 415-433-3777
investorrelations@altoingredients.com

FAQ

What is the grant amount received by Alto Ingredients in June 2022?

Alto Ingredients received a grant of $22.7 million from the USDA.

How will Alto Ingredients use the $22.7 million USDA grant?

The grant will be used for facility maintenance, equipment upgrades, and improving operational efficiency.

What program provided the grant to Alto Ingredients?

The grant was provided through the USDA’s Biofuel Producer Program.

What challenges does Alto Ingredients face according to the press release?

Challenges include adverse economic conditions, fluctuations in demand, and uncertainties related to COVID-19.

When was the press release regarding the grant issued?

The press release was issued on June 16, 2022.