ATEL Growth Capital is pleased to announce that LS9, Inc., an ATEL Growth
Capital portfolio company, has been acquired.As an early venture lender to LS9, the ATEL Funds provided an asset
collateralized loan of $4 million for 36 months. ATEL was collateralized by
LS9’s production facility in Okeechobee, Florida. ATEL Funds received
warrants to acquire LS9 stock as part of the loan agreement. The
acquisition of LS9 caused the loan to be repaid early with pre-payment
penalties and purchase of the warrants. ATEL Funds netted over $1.1 million
in profit and an internal rate of return (“IRR”) of more than 20% in 21
months.LS9, Inc. is a leader in the technology behind the development of
sustainable products in the chemical and fuel markets. In 2010, LS9 was
awarded the U.S. Environmental Protection Agency’s highest environmental
honor for its revolutionary technology. LS9 was backed by a group of top
tier investors including Khosla Ventures, Flagship Ventures, Blackrock
Ventures and Lightspeed Ventures.