Gevo Announces Closing of Whitebox Debt Exchange
June 20 2017 - 9:00AM
Gevo, Inc. (NASDAQ:GEVO), announced today that WB Gevo, Ltd.
(“Whitebox”), the holder of the Company’s issued and outstanding
Senior Secured Convertible Notes, due June 23, 2017 (the “2017
Notes”), exchanged (the “Exchange”) all $16.5 million of the
existing 2017 Notes for $16.5 million of the Company’s newly
created 12.0% Convertible Senior Secured Notes due March 15, 2020
(the “2020 Notes”).
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
$0.7359 per share. 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.
“This Exchange is a significant milestone for Gevo. With a new
maturity date for our senior debt in March 2020, we can focus on
executing our key strategic initiatives, without the distraction of
near term liquidity concerns. We ended last quarter with over $20
million of cash on our balance sheet, and we expect that this will
be sufficient to fund Gevo into 2018 without any additional
financings,” said Dr. Patrick Gruber, Gevo’s Chief Executive
Officer.
“Our improved balance sheet should play an important role in our
negotiations of supply agreements for our core jet fuel, renewable
gasoline and isobutanol products. Gevo’s improved financial
condition is important to customers, as it provides better
certainty that Gevo will produce and deliver its products to them
in the future,” Mr. Gruber continued.
A Current Report on Form 8-K will be filed with the U.S.
Securities and Exchange Commission that will include the Indenture
pursuant to which the 2020 Notes are being 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 Gevo’s ability to
produce and deliver jet fuel, renewable gasoline and isobutanol
products to customer and Gevo’s improved balance sheet and
financial condition, 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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