Gevo Announces Pricing of $3.5 Million Public Offering of Common Stock and Warrants
29 March 2016 - 10:01PM
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 and
warrants.
Gevo announced that it has agreed to sell 3,721,429 Series C
units, with each Series C unit consisting of one share of common
stock, one Series F warrant to purchase one share of common stock
and two Series H warrants, each to purchase one share of common
stock, at a public offering price of $0.35 per Series C unit. Gevo
has also agreed to sell 6,571,429 Series D units, with each Series
D unit consisting of a pre-funded Series G warrant to purchase one
share of common stock, one Series F warrant to purchase one share
of common stock and two Series H warrants, each to purchase one
share of common stock, at a public offering price of $0.34 per
Series D unit.
The Series F warrants will have an exercise price of $0.35 per
share, be exercisable beginning on October 1, 2016 and will expire
on April 1, 2021. The Series G warrants will have an exercise price
of $0.35 per share, which will be pre-paid upon issuance, except
for a nominal exercise price of $0.01 per share and, consequently,
no additional payment or other consideration (other than the
nominal exercise price of $0.01 per share) will be required to be
delivered to the Company by the holder upon exercise of the Series
G warrants. The Series G warrants will be exercisable from
the date of original issuance and will expire on April 1, 2017. The
Series H warrants will have an exercise price of $0.75 per share,
be exercisable beginning on the date of original issuance and will
expire on October 1, 2016. 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 $3.5 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 working capital and for other
general corporate purposes.
In connection with the offering, Rodman & Renshaw, a unit of
H.C. Wainwright & Co., LLC, is acting as sole book-running
manager.
The offering of shares of common stock and warrants 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 April 1, 2016, 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 and accompanying prospectus
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 Rodman & Renshaw via email at
placements@hcwco.com. 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 has developed proprietary
technology that uses a combination of synthetic biology, metabolic
engineering, chemistry and chemical engineering to focus primarily
on the production 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
fermentation plant in Luverne, MN. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols.
Gevo currently operates a 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, Toray Industries Inc. and Total SA, 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, 2014,
as amended, and in subsequent reports on Forms 10-Q and 8-K and
other filings made with the SEC by Gevo.
Media Contact
David Rodewald
The David James Agency, LLC
+1 805-494-9508
gevo@davidjamesagency.com
Investor Contact
Shawn M. Severson
The Blueshirt Group
+1 415-489-2918
shawn@blueshirtgroup.com
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