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Gevo, Inc. (NASDAQ: GEVO), a leading renewable chemicals and next-generation biofuels company, announced today that it has priced its concurrent underwritten public offerings of common stock and 7.5% convertible senior notes due 2022.
The Company announced that it has agreed to sell 12,500,000 shares of its common stock at a public offering price of $4.95 per share. The gross proceeds to the Company from this offering are expected to be $61,875,000, before deducting underwriting discounts and commissions and other estimated offering expenses. The Company has granted the underwriters a 30-day option to purchase up to an aggregate of 1,875,000 additional shares of common stock to cover over-allotments, if any. All of the shares in the common stock offering are to be sold by Gevo.
The Company also announced the pricing of its public offering of $40,000,000 aggregate principal amount of 7.5% convertible senior notes due 2022. The gross proceeds to the Company from this offering are expected to be $40,000,000, before deducting underwriting discounts and commissions and other estimated offering expenses. The Company has granted the underwriters a 30-day option to purchase up to an additional $5,000,000 in principal amount of convertible senior notes on the same terms and conditions to cover over-allotments, if any. The convertible senior notes will pay interest semi-annually at a rate of 7.5% per year and will mature on July 1, 2022, unless earlier repurchased, converted or redeemed. The convertible senior notes will be convertible at the holder’s option into shares of the Company at an initial conversion rate of 175.6697 shares of common stock per $1,000 principal amount of convertible senior notes, equivalent to a conversion price of approximately $5.69 per share of common stock, subject to adjustment in certain circumstances.
The Company expects to use the net proceeds from the offerings to repay a portion of its outstanding long-term debt obligations, to fund the cash consideration payable to complete the retrofit of its Luverne, Minn. plant, and to partially fund the Redfield Energy retrofit. To the extent that the net proceeds are not used for these purposes, the Company intends to use them to fund working capital and for other general corporate purposes.