The renewable biofuels firm is making steady progress and has just announced a $350 million offering of common stock shares.
Gevo, Inc. stock has plunged with the announcement of the common stock offering. The biofuels firm mentioned that it is selling the common stock shares at-the-market price in a registered direct offering worth $350 million.
The renewable chemicals and advanced biofuels company has been in the news recently. Renewable energy stocks have sparked in the market in recent times. As the world turns its direction towards more safe and clean energy, renewable chemicals and biofuels will play a vital role in changing things around. Gevo specializes in producing bio-based alternatives to petroleum-based products via a biotech and classical chemistry combo.
On Jan 20, 2021, Gevo announced that it has signed a definitive agreement with institutional investors to sell its common stock shares in a registered direct offering. Following that the stock went into a downward trend. Despite that, the company has positives that are going to strengthen its position in the coming time.
The $350 million offerings will comprise 43.75 million common stock shares that will be sold at a per-share price of $8. Gevo expects the closing of the offering to happen in the next couple of days, based on the customary closing conditions. The purpose of this offering to generate funds for capital projects, general corporate reasons, and working capital.
Before that, on Jan. 19, Gevo mentioned that its co-founder Frances Arnold was named as the Science team member of Joe Biden’s team. This can potentially be a win-win situation for both Arnold and Gevo. In Biden’s regime, it is anticipated that industries like renewable energy will have the opportunity to accelerate their growth and diversify their technology.
Earlier this month, the company announced a new ‘Net-Zero Projects’ concept that is designed to produce energy-dense liquid hydrocarbons via renewable energy. Gevo believes that this concept will transform the renewable energy produced through solar, wind, or other natural power sources. The net-zero projects will transform crops into transportable liquid fuel—using by-product only.
Gevo, Inc. (GEVO) has a different approach towards renewable energy. For instance, the company uses crops like corn and turn them into conventional fuel such as diesel, premium gasoline, and jet fuel. The company is well-positioned with a market value of just over $1 billion. With this unique renewable energy approach, Gevo has much more potential to help in transforming the world’s renewable energy concept. In the long-term, we could see Gevo stock making massive gains.