Movers and SHAKERS
Gevo, Inc. (GEVO)
Greenfield Site Announced - Debt Free One Way or Another
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.
Tranche 1 development modified to optimize design. Greenfield site announced. Last week, CEO Pat Gruber updated investors on the current strategic plan and highlighted Tranche 1 which is now slated to build a new 45 MGPY renewable fuel plant on a greenfield site. Yesterday, a two-year option was secured/announced to acquire 239 acres near Lake Preston, South Dakota, which meets a provision in the 25 MGPY supply agreement with Trafigura.
Recent strong stock price performance brings debt conversion option into play. Either way, the company will be debt free moving into 2021. While we expect convert debt of $12.7 million to be paid off next week, strong stock price performance makes conversion into equity possible. With the current stock price 17% above the conversion price of $2.44/share, there is clearly an incentive to convert ...
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.