Gevo Seeks to Raise $102 Million to Fund Biofuel Plant
Gevo priced a secondary offering of 12.5 million shares at $4.95 a share, expecting to raise almost $62 million before commissions and fees are deducted, according to a statement today. The company also priced $40 million worth of 7.5 percent convertible notes due in 2022.
The company, based in Englewood, Colorado, will use the proceeds to partially fund the retrofit of a Redfield Energy LLC biofuel plant in South Dakota, repay debt and pay for its plant in Luverne, Minnesota, which began production in May. Gevo announced plans to raise more capital June 27.
Gevo makes isobutanol from corn and non-food crops. Isobutanol may be blended with gasoline or refined into jet fuel, specialty chemicals or other products that are typically derived from petroleum.
The company’s shares rose 0.4 percent to $4.97 at the close in New York.
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