Thursday, December 31, 2020

Gevo, Inc. (GEVO)
Debt free with higher pro forma cash balance moving into 2021

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.

Strong December stock price performance proved catalyst for debt conversion into equity. ATM program updated for opportunistic use.  In the updated ATM equity prospectus, we learned that the convert debt was fully converted into equity after strong stock price performance in December and 5.67 million shares were issued to Whitebox to retire the convert debt, including PIK interest and a make whole payment. About $14 million of cash was preserved and current cash is $79 million. In 4Q2020, ATM equity issuance raised $6.2 million and warrant exercises added ~$0.4 million.

Potential milestones/catalysts over the next year: Expanding the supply contract portfolio with new industry/financial partners; Identifying engineering firm performing FEED work; Identifying equity and debt project financing partners; Awarding an EPC (Engineering/Procurement/Construction) contract to a construction firm; Financial closing of project debt/equity financing that allows the ...

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.