ENGLEWOOD, Colo., Jan. 13, 2020 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) (the “Company”) announced today that Wbox 2019-3 Ltd. (“Whitebox”), as the holder of the Company’s issued and outstanding 12.0% Convertible Senior Secured Notes due March 15, 2020 (the “2020 Notes”), and the Company have entered into an Exchange and Purchase Agreement (the “Purchase Agreement”) pursuant to which Whitebox has exchanged (the “Exchange”) all outstanding amounts under the existing 2020 Notes for approximately $14.4 million of the Company’s newly created 12.0% Convertible Senior Secured Notes due 2020/2021 (the “New Notes”). The New Notes are convertible into the Company’s common stock. The Exchange and the issuance of the New Notes occurred on January 10, 2020.
“This Exchange is a significant milestone for Gevo. With the extension of the maturity date for our senior debt, Gevo can focus on securing more 'take or pay' offtake agreements and arranging financing to build out its biogas business and construct the larger production facilities that Gevo will need to produce the renewable transportation fuels for those offtake agreements,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer.
The key terms of the New Notes are as follows:
The Company may not issue under the New Indenture (whether upon conversion of the New Notes or otherwise) additional shares of its common stock in excess of 19.99% of the Company’s common stock outstanding on the date of the New Indenture (January 10, 2020); this restriction is subject to removal upon approval by stockholders of the Company (the “Stockholder Approval”).
A Current Report on Form 8-K will be filed today with the U.S. Securities and Exchange Commission that will contain a more detailed description of the terms of the New Indenture, the Purchase Agreement, the Exchange and the New Notes and will include a copy of the Purchase Agreement and the New Indenture.
About Gevo
Gevo is commercializing the next generation of gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions, addressing the market need of reducing greenhouse gas emissions with sustainable alternatives. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business. Learn more at www.gevo.com.
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 the Exchange, the Purchase Agreement, the New Notes, the Stockholder Approval, including whether Gevo’s stockholders will approve the Exchange and the transactions contemplated by the Purchase Agreement will be completed, 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, 2018, 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.
Investor and Media Contact
Shawn M. Severson
Integra Investor Relations
+1 415-226-7747
info@integra-ir.com
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