Gevo Announces Pricing of $15.6 Million Public Offering of Common Stock and Warrants
08 September 2016 - 3:25PM
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 24,800,000 Series E
units, with each Series E unit consisting of one share of common
stock and a half of one Series I warrant to purchase one share of
common stock at a public offering price of $0.55 per Series E unit.
Gevo has also agreed to sell 3,700,000 Series F units, with
each Series F unit consisting of a pre-funded Series J warrant to
purchase one share of common stock and a half of one Series I
warrant to purchase one share of common stock at a public offering
price of $0.54 per Series F unit.
The Series I warrants will have an exercise price of $0.55 per
share, are exercisable beginning on the date of original issuance
and will expire on September 13, 2021. The pre-funded Series J
warrants will have an exercise price of $0.55 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 Gevo by the holder upon
exercise of the pre-funded Series J warrants. The pre-funded Series
J warrants will be exercisable from the date of original issuance
and will expire on September 13, 2017. 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 $15.6 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. The offering is expected to close on or
about September 13, 2016, subject to customary closing
conditions.
Concurrent with the offering, Gevo entered into private exchange
agreements with holders of its 7.5% convertible senior notes due
2022 (the “2022 Notes”), to exchange an aggregate of $11.4 million
of principal amount of 2022 Notes for an aggregate of 13,999,354
shares of its common stock, and Gevo expects to issue the shares
prior to or concurrent with the closing of this offering.
Upon completion, these exchanges will reduce the outstanding
principal amount of the 2022 Notes to $11 million.
In connection with the offering, Oppenheimer & Co. Inc.
is acting as sole underwriter.
A shelf registration statement relating to the shares of common
stock and warrants to be issued in the proposed offering has been
filed with the Securities and Exchange Commission (SEC)
and is effective. 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
Oppenheimer & Co. Inc. Attention: Syndicate
Prospectus Department, 85 Broad Street, 26th Floor, New
York, NY 10004, or by telephone
at (212) 667-8563, or by email at
EquityProspectus@opco.com. Electronic copies of the final
prospectus supplement and accompanying prospectus will also be
available on the SEC’s website at www.sec.gov.
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. Any
offer or sale will be made only by means of a prospectus and, to
the extent applicable, a free writing prospectus which has or will
be filed with the SEC.
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,
Minnesota. Gevo has also developed technology to produce
hydrocarbon products from renewable
alcohols. Gevo currently operates a biorefinery
in Silsbee, Texas, 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, 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, 2015, 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
EnergyTech Investor, LLC
+1 415-233-7094
gevo@energytechinvestor.com
@ShawnEnergyTech
www.energytechinvestor.com
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