Gevo (GEVO) Prices Common Stock, Warrants Offering for Proceeds of $15.6M

September 8, 2016 9:26 AM EDT

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Gevo, Inc. (Nasdaq: GEVO) announced that it has priced its underwritten public offering of common stock and warrants.

Gevo announced that it has agreed to sell 24,800,000 Series E units, with each Series E unit consisting of one share of common stock and a half of one Series I warrant to purchase one share of common stock at a public offering price of $0.55 per Series E unit. Gevo has also agreed to sell 3,700,000 Series F units, with each Series F unit consisting of a pre-funded Series J warrant to purchase one share of common stock and a half of one Series I warrant to purchase one share of common stock at a public offering price of $0.54 per Series F unit.

The Series I warrants will have an exercise price of $0.55 per share, are exercisable beginning on the date of original issuance and will expire on September 13, 2021. The pre-funded Series J warrants will have an exercise price of $0.55 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 Gevo by the holder upon exercise of the pre-funded Series J warrants. The pre-funded Series J warrants will be exercisable from the date of original issuance and will expire on September 13, 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 approximately $15.6 million not including any future proceeds from the exercise of the warrants.

Gevo currently intends to use the net proceeds from the offering, excluding any future proceeds from the exercise of the warrants, to fund working capital and for other general corporate purposes. The offering is expected to close on or about September 13, 2016, subject to customary closing conditions.

Concurrent with the offering, Gevo entered into private exchange agreements with holders of its 7.5% convertible senior notes due 2022 (the “2022 Notes”), to exchange an aggregate of $11.4 million of principal amount of 2022 Notes for an aggregate of 13,999,354 shares of its common stock, and Gevo expects to issue the shares prior to or concurrent with the closing of this offering. Upon completion, these exchanges will reduce the outstanding principal amount of the 2022 Notes to $11 million.

In connection with the offering, Oppenheimer & Co. Inc. is acting as sole underwriter.

A shelf registration statement relating to the shares of common stock and warrants to be issued in the proposed offering has been filed with the Securities and Exchange Commission (SEC) and is effective. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been filed with the SEC and a final prospectus supplement will be filed with the SEC. Copies of the final prospectus supplement and the accompanying prospectus relating to the securities being offered may also be obtained, when available, from Oppenheimer & Co. Inc. Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, or by telephone at (212) 667-8563, or by email at EquityProspectus@opco.com. Electronic copies of the final prospectus supplement and accompanying prospectus will also be available on the SEC’s website at www.sec.gov.



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