Wednesday, August 26, 2020
Gevo, Inc. (GEVO)
ATM Offering and Warrant Exercises Add Almost $60 Million.
Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Existing ATM program tapped to issue 38.5 million shares at $1.30/share netting $46.1 million. Combined with existing cash of $21.1 million on August 20th per the prospectus, pro forma cash increases to ~$67.2 million, or slightly higher than expected.
Series A Warrant exercises further boost cash. On August 20th, Series 2020-A Warrants were exercised and 22.97 million shares were issued. Gross proceeds of $13.8 million should move pro forma cash into the $80 million range. Remaining Series 2020-A Warrants to issue …
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