Gevo raises $139.2M in offering to institutional investors

In Colorado, on June 5, 2022, Gevo executed a registered direct offering of 33.3 million shares to certain institutional investors. That offering closed on June 8, 2022, and the net proceeds of $139.2 million combined with the company’s existing cash, cash equivalents, restricted cash and marketable securities provide the company with approximately $555.7 million of liquidity (as of June 15, 2022) to fund future operations and capital projects. As part of the offering, the company issued 33.3 million Series 2022-A Warrants with an exercise price of $4.37 per share. If all 33.3 million Series 2022-A Warrants were to be exercised in cash at the exercise price of $4.37 per share, the Company would receive additional net proceeds of approximately $145.7 million. The recent offering has further strengthened the Company’s balance sheet, which is expected to facilitate the financing of the company’s Net-Zero 1 project (“NZ1”) and provide financial resources for the company’s numerous growth opportunities. Given the forecasts of a recession in the near future and a generally negative market outlook, the Board of Directors made the decision to raise equity capital to ensure to the highest probability that Gevo has enough cash on hand to close its NZ1 financing, even if Gevo is responsible for 100% of the equity in the project. Gevo is in the process of developing additional plant sites to meet demand under its existing SAF and hydrocarbon supply agreements, and some of the proceeds are expected to be used to advance those efforts.

Gevo now has more than 200 million gallons per year (“MGPY”) of predominantly take-or-pay, financeable SAF and hydrocarbon fuel supply agreements, which are expected to support project debt financing. This level of demand would require three additional plants of equal size to the expected capacity of NZ1 (currently expected to be approximately 55 million gallons per year) to be built over the next four years to satisfy those agreements. Based on current market projections, collectively, these agreements represent approximately $1.2 billion in expected sales per year. Net-Zero 1 Status Gevo’s NZ1 project is on schedule with initial volumes of SAF expected to be delivered in 2025 to fulfill a portion of existing SAF and hydrocarbon supply agreements. NZ1 is expected to produce approximately 55 MGPY of SAF or 62 MGPY of total hydrocarbon volumes, which would satisfy part of the 200 MGPY of financeable SAF and hydrocarbon supply agreements that are currently in place.