Gevo prices $11.9 million public offering common stock warrants

Gevo prices $11.9 million public offering of common stock and warrants

5:30 AM, 17th February 2017
Gevo logo

ENGLEWOOD, US: Gevo Inc has priced its underwritten public offering of common stock and warrants. The company has agreed to sell 5,680,000 Series G units, with each Series G-unit consisting of one share of common stock, a Series K warrant to purchase one share of common stock and a Series M warrant to purchase one share of common stock, at a public offering price of $1.90 per Series G-unit.

It has also agreed to sell 570,000 Series H units, with each Series H unit consisting of a pre-funded Series L warrant to purchase one share of common stock, a Series K warrant to purchase one share of common stock and a Series M warrant to purchase one share of common stock, at a public offering price of $1.89 per Series H unit.

The Series K warrants will have an exercise price of $2.35 per share, be exercisable beginning the date of original issuance and will expire on February 17, 2022. The Series L warrants will have an exercise price of $1.90 per share, which will be pre-paid upon issuance, except for a nominal exercise price of $0.01 per share and, consequently, no additional payment or other consideration (other than the nominal exercise price of $0.01 per share) will be required to be delivered to the company by the holder upon exercise of the Series L warrants.

The Series L warrants will be exercisable from the date of original issuance and will expire on February 17, 2018. The Series M warrants will have an exercise price of $2.35 per share, be exercisable beginning on the date of original issuance and will expire on November 17, 2017. The shares of common stock and the warrants will be immediately separable and will be issued separately.

The gross proceeds to Gevo from this offering are expected to be approximate $11.9 million not including any future proceeds from the exercise of the warrants.

Gevo intends to use 15 percent of the net proceeds from the offering, excluding any future proceeds from the exercise of the warrants, to pay down a portion of its outstanding 10 percent convertible senior secured notes due 2017, with the balance to be used to fund working capital and for other general corporate purposes. The offering is expected to close on or about February 17, 2017, subject to customary closing conditions.

In connection with the offering, Oppenheimer & Co Inc is acting as sole book-running manager. Rodman & Renshaw, a unit of H C Wainwright & Co, is acting as co-manager in connection with the offering.

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