Gevo, Inc. (NASDAQ:GEVO) announced yesterday that it intends to offer and sell, subject to market and other conditions, Series E units, with each Series E unit consisting of one share of common stock and Series I warrants to purchase a certain number of shares of common stock. The Company is also offering Series F units, in lieu of Series E units, to those purchasers whose purchase of additional Series E units in the offering would result in the purchaser beneficially owning more than 4.99% of Gevo’s outstanding common stock following the completion of the offering. The Series F units will consist of pre-funded warrants to purchase one share of common stock and Series I warrants to purchase a certain number of shares of common stock. The units are to be sold by Gevo subject to market and other conditions in an underwritten public offering.
Gevo currently intends to use the net proceeds from the offering, excluding any future proceeds from the exercise of the warrants, to fund working capital and for other general corporate purposes. (Original Source)
The public offering would dilute shareholders’ investments, and as such Gevo shares are currently dropping nearly 24% to $0.535 in per-market trading. GEVO has a 1-year high of $2.45 and a 1-year low of $0.22. The stock’s 50-day moving average is $0.57 and its 200-day moving average is $0.44.
Gevo, Inc. is a renewable chemicals and next generation biofuels company, which is focused on the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. The company operates its business through two segments: Gevo, Inc. and Gevo Development/Agri-Energy. The Gevo, Inc. segment is responsible for all research and development activities related to the future production of isobutanol, including the development of its proprietary biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on isobutanol technology. The Gevo Development/Agri-Energy segment is currently responsible for the operation of its agri energy facility and the production of ethanol, isobutanol and related products.