Movers and SHAKERS
Monday, August 24, 2020
Gevo, Inc. (GEVO)
ATM Offering of $50 million Removes Funding Overhang.
Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Equity offering adds $50 million and tempers near-term funding overhang. After the strong stock price move on Thursday, the existing ATM program was tapped to issue 38.5 million shares at $1.30/share, or a 29% discount. While the total share count increases to 89.8 million, pro forma cash increases to ~$69 million.
Likely warrant exercises could add ~$18 million and further temper near-term funding overhang. As we highlighted last week, the strong stock price move likely pushed many warrants holders to exercise early. If true, the warrant overhang would decline and pro forma cash would ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.