Gevo prices USD-11.9m offering

Commercial bio-based isobutanol plant at Luverne. Source: http://www.gevo.com

Feb 15 (Renewables Now) - Gevo Inc (NASDAQ:GEVO) on Tuesday priced an underwritten public offering of common stock and warrants, expecting to raise USD 11.9 million (EUR 11.3m) gross.

The US advanced biofuels and renewable chemicals company plans to use 15% of the net proceeds to pay down part of its outstanding 10% convertible senior secured notes due 2017. The balance will be used for working capital and other general corporate purposes.

Gevo has agreed to sell 5.68 million Series G units, consisting of one share of common stock, a Series K warrant to purchase one share and a Series M warrant to purchase one share, at a price of USD 1.90 per unit. It has also agreed to sell 570,000 Series H units at USD 1.89 apiece.

The offering, which was unveiled on Monday, is seen to close on or about February 17.

Gevo also announced on Tuesday a letter of intent (LoI) for an offtake agreement with HCS Holding GmbH (HCS). The offtake deal will see HCS first purchase isooctane from Gevo's demonstration hydrocarbons plant in Silsbee, Texas and then from the company's future commercial hydrocarbon plant that is expected to be built at its site in Luverne, Minnesota.  

(USD 1.0 = EUR 0.946)  

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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