Gevo to raise $750m from mixed shelf offering

Gevo announced it will raise $750m from a mixed shelf offering to use the proceeds for general corporate purposes including repayment or refinancing of debt, acquisitions, working capital, capital expenditures, and repurchases or redemptions of securities.

Mixed shelf offering is a flexible financing tool to issue various securities (common stock, preferred stock, warrants, etc.) in one or more offerings within a specific timeframe.

Gevo’s shelf offering has a maximum size of $750m.

In its prospectus supplement, the company said it plans to raise $500m via common stock at the-market offering from time to time through its sales agent Wainwright.

The company utilised mixed shelf offerings in the past.

Earlier in August 2018, Gevo filed a $300m mixed shelf offering prospectus allowing them to issue various securities, including common stock, preferred stock, warrants, and debt securities, within a three-year period.

However, they did not utilise this specific offering to its full extent.

Moreover, in November 2020, the company filed another mixed shelf offering prospectus for up to $750m. Of this, the company raised approximately $123m in 2021 through the issuance of common stock and warrants using the 2020 mixed shelf offering.

The company also raised another $100m in 2022 through the issuance of senior convertible notes, again utilising the 2020 shelf.

The company’s mixed shelf offering (especially the common stock issuance) will likely result in share dilution. The company has repeatedly sought to raise cash from stock issuance in order to meet expenses.

As per the latest filings, Gevo has over $320m, enough to operating expenses for years ahead if they remain in current $60-70m range.