Gevo stockholders approve reverse spilt, helps to maintain listing on NASDAQ Capital Market

US renewable chemicals and advanced biofuels company Gevo has announced that its stockholders approved an amendment to its Amended and Restated Certificate of Incorporation to effect a reverse stock split of the outstanding shares of common stock.

This happened by a ratio of not less than one-for-two and not more than one-for-twenty at any time on or prior to 6 January 2017, with the exact ratio to be set at a whole number within this range by the Board of Directors in its sole discretion.   

In a statement, Gevo said it intends to announce the exact ratio for the reverse stock split as soon as it has been determined by the Board of Directors.

“This is an important result for Gevo as we expect it will allow us to maintain our listing on the NASDAQ Capital Market, thus preserving the liquidity of our stock,” said Pat Gruber, Gevo’s CEO. “More importantly, not being listed on a national securities exchange would potentially have allowed certain holders of our convertible notes to accelerate the repayment of their debt.”

He added: “We ended last quarter with approximately $31.1 million (€29.79m) of cash, and we would much prefer using these funds for growing the business rather than using it all to pay off creditors. I would like to thank our stockholders for their ongoing support of Gevo and we look forward to continuing the company’s path towards profitability.”