Gevo Inc., a biofuels company that has been burning through cash trying to produce a higher-value alcohol at a plant in Luverne, Minn., said Tuesday that it will sell stock and senior notes to raise capital.
The Englewood, Colo.-based company said proceeds from the offering will be used to help ramp up production and to repay $5.1 million in long-term debt. Gevo has converted the former Luverne ethanol plant to produce isobutanol, a renewable chemical and biofuel, using its proprietary technology.
In the offering managed by Minneapolis-based Piper Jaffray & Co., each common stock unit includes a warrant for additional stock. Each senior note unit will consist of $1,000 principal amount of convertible senior notes due 2023 and warrants to purchase a certain number of shares of common stock, Gevo said in a statement.
Gevo shares have suffered because of production delays, and have traded at under $2 per share since late September. Shares closed Tuesday at $1.66.