Gevo Announces Pricing of Public Offering of Common Stock and Warrants
July 31 2014 - 8:00AM
Gevo, Inc. (Nasdaq:GEVO), a leading renewable chemicals and
next-generation biofuels company, announced today that it has
priced its underwritten public offering of common stock units.
Gevo announced that it has agreed to sell 30,000,000 common
stock units. Each common stock unit consists of one share of common
stock and a warrant to purchase 0.5 shares of common stock, at a
public offering price of $0.60 per common stock unit. Each warrant
included in a common stock unit will have an exercise price of
$0.85 per share, will be exercisable from the date of original
issuance and will expire on August 5, 2019. The shares of common
stock and the warrants will be immediately separable and will be
issued separately. The gross proceeds to Gevo from this offering
are expected to be approximately $18 million, not including any
future proceeds from the exercise of the warrants.
Gevo currently intends to use the net proceeds from the
offering, excluding any future proceeds from the exercise of the
warrants, to fund capital to complete the side-by-side
configuration of its Luverne, MN facility, to fund working capital
and for other general corporate purposes.
In connection with the offering, Cowen and Company, LLC is
acting as sole manager.
The offering of common stock units was made pursuant to Gevo's
shelf registration statement filed with the Securities and Exchange
Commission (SEC) and declared effective, and is expected to close
on or about August 5, 2014, subject to customary closing
conditions. This press release does not constitute an offer to
sell, or the solicitation of an offer to buy, these securities, nor
will there be any sale of these securities in any state or other
jurisdiction in which such offer, solicitation or sale is not
permitted.
A preliminary prospectus supplement describing the terms of the
offering has been filed with the SEC and a final prospectus
supplement will be filed with the SEC. Copies of the final
prospectus supplement and the accompanying prospectus relating to
the securities being offered may also be obtained, when available,
from Cowen and Company, LLC, c/o Broadridge Financial Services,
1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus
Department, via telephone at 631-274-2806 or via facsimile at
631-254-7140. Electronic copies of the final prospectus supplement
and accompanying prospectus will also be available on the SEC's
website at http://www.sec.gov.
About Gevo
Gevo is a leading renewable technology, chemical products, and
next generation biofuels company. Gevo's underlying technology uses
a combination of synthetic biology, metabolic engineering,
chemistry and chemical engineering to focus primarily on the
production and sale of isobutanol, as well as related products from
renewable feedstocks. Gevo's strategy is to commercialize biobased
alternatives to petroleum-based products to allow for the
optimization of fermentation facilities' assets, with the ultimate
goal of maximizing cash flows from the operation of those assets.
Gevo produces isobutanol, ethanol and high-value animal feed at its
first fermentation plant in Luverne, MN. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols.
Gevo currently operates its first biorefinery in Silsbee, TX, in
collaboration with South Hampton Resources Inc., to produce
renewable jet fuel, octane, and ingredients for plastics like
polyester. Gevo has a marquee list of partners including The
Coca-Cola Company, Total SA, and LANXESS, Inc., an affiliate of
LANXESS Corporation, among others. Gevo is committed to a
sustainable bio-based economy that meets society's needs for
plentiful food and clean air and water.
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to a variety of matters, including, without
limitation, statements regarding the completion, timing and size of
the proposed public offering, Gevo's anticipated proceeds from the
offering, and its use of those proceeds and other statements that
are not purely statements of historical fact. These forward-looking
statements are made on the basis of the current beliefs,
expectations and assumptions of the management of Gevo and are
subject to significant risks and uncertainty. Investors are
cautioned not to place undue reliance on any such forward-looking
statements. All such forward-looking statements speak only as of
the date they are made, and Gevo undertakes no obligation to update
or revise these statements, whether as a result of new information,
future events or otherwise. Although Gevo believes that the
expectations reflected in these forward-looking statements are
reasonable, these statements involve many risks and uncertainties
that may cause actual results to differ materially from what may be
expressed or implied in these forward-looking statements. For a
further discussion of risks and uncertainties that could cause
actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to the
business of Gevo in general, see the risk disclosures in the Annual
Report on Form 10-K of Gevo for the year ended December 31, 2013,
and in subsequent reports on Forms 10-Q and 8-K and other filings
made with the SEC by Gevo.
CONTACT: Media Contact:
Robin Peak
Gevo, Inc.
T: (720) 267-8632
rpeak@gevo.com
Investor Contact:
Mike Willis
Gevo, Inc.
T: (720) 267-8636
mwillis@gevo.com
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