Trellis Earth Products, Inc. signed a letter of intent to acquire substantially all of the assets of Cereplast, Inc. (OTCPK:CERP.Q) for $2.28 million on April 18, 2014. Trellis Earth Products, Inc. signed an asset purchase agreement to acquire substantially all of the assets of Cereplast, Inc. (OTCPK:CERP.Q) on May 27, 2014. Trellis Earth Products, Inc. acted as stalking horse bidder in the transaction. The over bid price amounts to $1 million. Around 10% of the purchase price has been kept as a deposit. The bid time will expire on June 10, 2014. The auction will be held on June 17, 2014. The transaction is subject to the approval of bankruptcy court and execution of definite agreement. If there are no qualified bids apart from the stalking horse bid then the bankruptcy court will approve the transaction. The termination fee to be paid by the seller in the case that the stalking horse bid is not accepted as the successful bid in $0.04 million.

As of June 20, 2014, United States Bankruptcy Judge Basil H. Lorch III entered the sale order for the assets of Cereplast. Trellis Earth will pay $2.6 million for substantially all of Cereplast's assets. Axiom Capital Management Inc. of New York City acted as financial advisor for Trellis Earth in the transaction.

Trellis Earth Products, Inc. completed the acquisition of substantially all of the assets of Cereplast, Inc. (OTCPK:CERP.Q) on June 27, 2014. Cereplast received a purchase price of $2.6 million, from which $2.24 million was allocated and paid to Horizon Technology Finance Corporation for its first priority secured claim on the majority of the assets of the Cereplast, $0.015 million was allocated and paid to Susquehanna Commercial Finance, Inc. for its secured claim on certain equipment, and $0.09 million was allocated and paid to Sherwood Partners, Inc. for its consultant's fee, and $0.25 million has been allocated for Kathryn L. Pry's fees (Trustee) and attorneys' fee.