Gevo Prices Public Offering At $1.35 Per Unit - Quick Facts

(RTTNews) - Gevo Inc. (GEVO), a renewable chemicals and next-generation biofuels company, announced that it has priced its underwritten public offering of 18.525 million common stock units at $1.35 per common stock unit. Each common stock unit consists of one share of common stock and a warrant to purchase one share of common stock.

The company said it has granted the underwriter a 30-day option to purchase up to an additional 2.78 million shares of common stock and/or warrants to purchase up to 2.78 million shares of common stock to cover over-allotments, if any.

Each warrant included in a common stock unit will have an exercise price of $1.85 per share, will be exercisable from the date of original issuance and will expire on December 16, 2018.

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 $25 million, not including any future proceeds from the exercise of the warrants.

Certain of Gevo's directors and officers have expressed an interest in participating in the public offering of common stock units.

The company said it intends to use the net proceeds from the offering, excluding any future proceeds from the exercise of the warrants, to ramp up startup production and sales at its Luverne, Minn. plant.

The firm also plans to use a portion of the net proceeds from the offering to repay $5.1 million in its outstanding long-term debt obligations under its loan agreement, and may also use a portion of the net proceeds from the offering to fund working capital and for other general corporate purposes, which may include paying down additional long-term debt obligations.

In connection with the offering, Piper Jaffray & Co. is acting as sole manager.

Gevo also announced that it has decided not to pursue its previously announced public offering of senior note units.