Cereplast (CERP) Pops Higher; Enters Agreement for Distribution of Hybrid Resins

May 14, 2012 9:59 AM EDT
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Cereplast, Inc. (Nasdaq: CERP), is trading stronger early Monday following the release of an update to its Accounts Receivable collection efforts. Shares are above 12 percent in the morning session.

From the release: "Cereplast provided an update on the collection of its outstanding receivables. The Company has entered into an agreement with Singularis Solutions Pvt. Ltd. of Bangalore, India to distribute the Cereplast Hybrid Resins products that are currently under the control of two large European customers.

Under the terms of the agreement, Singularis Solutions will purchase and distribute up to $8.6 million of inventory between May 30, 2012 and August 30, 2012. Singularis Solutions will issue letters of credit to Cereplast in an aggregate amount of $8.6 million to secure their purchase. In addition Cereplast and Singularis are exploring additional opportunities for future business in the region."

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