The investors will buy about 5.5 million shares of common stock at $26.38 per share and will have the right to purchase another $2.7 shares at $31.55 per share six month after the closing of the initial deal.

Fresno, Calif.-based Pacific Ethanol will use the money to accelerate its goal of building five ethanol facilities, with a total annual production capacity of 220 million gallons, by the end of 2008. The company also plans to complete additional facilities by the end of 2010, giving it the capacity to produce 420 million gallons of ethanol per year.