Gevo Announces Stockholder Vote to Clear Way for Whitebox Debt Exchange
June 16 2017 - 9:00AM
Gevo, Inc. (NASDAQ:GEVO), announced today that stockholders
approved the potential issuance of more than 19.99% of Gevo’s
outstanding common stock upon conversion of, or related to, the
Company’s newly created 12.0% Convertible Senior Secured Notes due
2020 (the “2020 Notes”), at the Company’s Annual Meeting of
Stockholders held yesterday. This approval clears the way for WB
Gevo, Ltd. (“Whitebox”), the holder of the Company’s issued and
outstanding Senior Secured Convertible Notes, due June 23, 2017
(the “2017 Notes”), to exchange (the “Exchange”) all $16.5 million
of the existing 2017 Notes for $16.5 million of the Company’s 2020
Notes.
The Exchange is expected to close on June 20, 2017.
As previously disclosed, the key terms of the 2020 Notes are as
follows:
- Maturity Date: The 2020 Notes will
mature on March 15, 2020.
- Interest: The 2020 Notes will accrue interest
at 12% per annum, with 10% payable in cash and 2% payable as
Payment in Kind (“PIK”) interest. The PIK interest is paid by
increasing the principal amount of the 2020 Notes by the amount of
PIK interest due.
- Conversion and Conversion Price: The 2020
Notes are convertible, at the option of the holders, into shares of
the Company’s common stock. The 2020 Notes will have an initial
conversion price (the “Conversion Price”) equal to the lesser of
(i) $1.196 per share, or (ii) a premium of 15% to the closing price
of the Company’s common stock on the date of the Exchange.
- Conversion Price Reset and Adjustments: Upon
completion of certain equity issuances by the Company, the holders
will have a one-time right to reset the Conversion Price (i) in the
first 90 days following the Exchange, at a 25% premium to the
common stock price in the equity issuance and (ii) after 90 and
within 180 days following the Exchange, at a 35% premium to the
common stock share price in the equity issuance.
- Holder Option: The holders have an option,
subject to certain conditions, to purchase up to an additional $5.0
million aggregate principal amount of 2020 Notes within 90 days of
the closing of the exchange contemplated by the Exchange and
Purchase Agreement with Whitebox.
A Current Report on Form 8-K was filed on April 20, 2017, with
the U.S. Securities and Exchange Commission that contains a more
detailed description of the terms of the Exchange and Purchase
Agreement with Whitebox, the Exchange and the 2020 Notes and will
include a copy of the Exchange and Purchase Agreement with Whitebox
and the form of indenture pursuant to which the 2020 Notes would be
issued.
About Gevo
Gevo is a leading renewable technology, chemical products, and
next generation biofuels company. Gevo has developed proprietary
technology that uses a combination of synthetic biology, metabolic
engineering, chemistry and chemical engineering to focus primarily
on the production of isobutanol, as well as related products from
renewable feedstocks. Gevo’s strategy is to commercialize bio-based
alternatives to petroleum-based products to allow for the
optimization of fermentation facilities’ assets, with the ultimate
goal of maximizing cash flows from the operation of those assets.
Gevo produces isobutanol, ethanol and high-value animal feed at its
fermentation plant in Luverne, Minnesota. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols.
Gevo currently operates a biorefinery in Silsbee, Texas, in
collaboration with South Hampton Resources Inc., to produce
renewable jet fuel, octane, and ingredients for plastics like
polyester. Gevo has a marquee list of partners including The
Coca-Cola Company, Toray Industries Inc. and Total SA, among
others. Gevo is committed to a sustainable bio-based economy that
meets society’s needs for plentiful food and clean air and
water.
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements, which include statements relating to whether the
Exchange contemplated by the Exchange and Purchase Agreement with
Whitebox will be completed and whether the closing of the Exchange
will occur on June 20, 2017, are made on the basis of the current
beliefs, expectations and assumptions of the management of Gevo and
are subject to significant risks and uncertainty. Investors
are cautioned not to place undue reliance on any such
forward-looking statements. All such forward-looking statements
speak only as of the date they are made, and Gevo undertakes no
obligation to update or revise these statements, whether as a
result of new information, future events or otherwise. Although
Gevo believes that the expectations reflected in these
forward-looking statements are reasonable, these statements involve
many risks and uncertainties that may cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements. For a further discussion of risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of Gevo in general, see the risk
disclosures in the Annual Report on Form 10-K of Gevo for the year
ended December 31, 2016, and in subsequent reports on Forms 10-Q
and 8-K and other filings made with the U.S. Securities and
Exchange Commission by Gevo.
Media Contact
David Rodewald
The David James Agency, LLC
+1 805-494-9508
gevo@davidjamesagency.com
Investor Contact
Shawn M. Severson
EnergyTech Investor, LLC
+1 415-233-7094
gevo@energytechinvestor.com
@ShawnEnergyTech
www.energytechinvestor.com
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