Gevo Slides on Raising $25 Million to Restart Biofuel Plant
Gevo fell 27 percent to $1.21 at the close in New York, the most since September 2012 and a record low.
The company priced 18.525 million common stock units, comprising one share and a warrant to buy an additional share, at $1.35 each, the the Englewood, Colorado-based company said in a statement today.
Funds raised by the offering will be used to restart biofuel production at its facility in Luverne, Minnesota and to repay $5.1 million in long-term debt. Gevo halted production of isobutanol in Luverne in September 2012 after contamination issues prompted the company to adjust its manufacturing process. It resumed output on a small scale in June and hasn’t returned to commercial-scale operations.
The company also canceled plans to issue convertible senior notes, announced yesterday.
Gevo uses corn and plant waste to make isobutanol, a compound that may be blended with gasoline or converted into hydrocarbon fuels and chemicals.
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