Gevo issues $350 million new shares to help fund capital projects
Advanced biofuels firm Gevo has entered a share issue agreement worth $350 million (€287 million).
The company has entered into definitive agreements with institutional and accredited investors for the sale of 43,750,000 at $8 per share (€6.5) in a registered direct offering priced at-the-market under Nasdaq rules.
Gevo intends to use the net proceeds from the offering to fund capital projects, working capital and for general corporate purposes.
Gevo entered into a binding renewable hydrocarbons (drop-in biofuels) purchase and sales agreement with Trafigura Trading, a wholly-owned subsidiary of Trafigura Group, last summer.
The agreement is a long-term, take-or-pay contract and is the largest contract in Gevo’s history.
Trafigura is a major independent commodity trading company with over $171 billion (€144 billion) and more than $54 billion (€45.7 billion) in revenue and assets, respectively.
Under this contract, Trafigura is expected to take delivery of 25 MPGY of renewable hydrocarbons the majority of which is expected to be low-carbon premium petrol with a smaller portion of the volume for sustainable aviation fuel (SAF), starting in 2023.
The commitment will support Trafigura’s efforts to develop the market for low-carbon fuels including low-carbon premium petrol. The agreement will also enable Trafigura to supply SAF to both US and international customers whose interest is growing in low-carbon jet fuel.
The company has entered into definitive agreements with institutional and accredited investors for the sale of 43,750,000 at $8 per share (€6.5) in a registered direct offering priced at-the-market under Nasdaq rules.
Gevo intends to use the net proceeds from the offering to fund capital projects, working capital and for general corporate purposes.
Gevo entered into a binding renewable hydrocarbons (drop-in biofuels) purchase and sales agreement with Trafigura Trading, a wholly-owned subsidiary of Trafigura Group, last summer.
The agreement is a long-term, take-or-pay contract and is the largest contract in Gevo’s history.
Trafigura is a major independent commodity trading company with over $171 billion (€144 billion) and more than $54 billion (€45.7 billion) in revenue and assets, respectively.
Under this contract, Trafigura is expected to take delivery of 25 MPGY of renewable hydrocarbons the majority of which is expected to be low-carbon premium petrol with a smaller portion of the volume for sustainable aviation fuel (SAF), starting in 2023.
The commitment will support Trafigura’s efforts to develop the market for low-carbon fuels including low-carbon premium petrol. The agreement will also enable Trafigura to supply SAF to both US and international customers whose interest is growing in low-carbon jet fuel.
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