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.
Gevo aims to raise more capital for Luverne, Minn., biofuel plant
December 11, 2013 at 2:46AM
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.
David Shaffer
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