Aug 1, 2014 - US biofuels and biochemicals company Gevo Inc (NASDAQ:GEVO) said yesterday it expects to raise some USD 18 million (EUR 13.4m) in gross proceeds from sale of common stock units.
Gevo plans to use the money to finance the completion of the side-by-side (SBS) configuration of its plant in Luverne, Minnesota. The rest of the proceeds will go for working capital and other general corporate purposes.
The particular SBS operational mode at the facility was initiated in June, with one fermenter dedicated to isobutanol production and three other dedicated to ethanol production. Earlier this week, Gevo's CEO Patrick Gruber said in a statement he expects the company to break even at the Luverne plant by the end of the year.
The company has priced the underwritten public offering of 30 million common stock units at USD 0.60 a share. Each unit comprises one common share and a warrant to buy 0.5 shares of common stock at an exercise price of USD 0.85 apiece. The gross proceeds from the offering does not include any future funds to be received from the exercise of the warrants. The holders of the warrants will be able to exercise them by August 5, 2019.
The underwritten public offering is expected to be closed on or about August 5.
(USD 1.0 = EUR 0.747)
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