Gevo, Inc. (GEVO) – Significant Capital Raises Boost Financing Visibility

Posted on by Admin

Monday, January 25, 2021

Gevo, Inc. (GEVO)
Significant Capital Raises Boost Financing Visibility

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.

    Massive equity offering priced and pro forma cash is $534 million. A $350 million equity offering of 43.75 million shares at $8.00/share should generate about $321.7 million after expenses and pro forma cash should be $533.6 million, up from $78.6 million on December 29th, an increase of $133.3 million. In addition to the offering, we estimate that the ATM program generated $135.8 million through the issuance of 24.4 million shares at an average price of $5.56/share and exercises of 1.9 million warrants generated $1.1 million which more than offset estimated cash outflows of ~$3.6 million in the same time frame.

    Cash boost allows funding of majority equity interests in first two Net-Zero plants.  Additional cash is likely to fund majority of equity required for the first two Net-Zero plants and other projects, like the RNG projects in Iowa. Ability to fund equity investments should improve negotiating leverage and financial terms …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Leave a Reply