Gevo is a renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize biobased alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce ATJ, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water.

Gevo Reports 1st Quarter 2017 Financial Results
Signs First Definitive Supply Agreement for Offtake from Expanded Luverne Facility
- Gevo to Host Conference Call Today at 4:30 p.m. EST/2:30 MST -

Reports net loss per share of ($0.51) for the quarter
Reports non-GAAP Adjusted Net Loss Per Share1 of ($0.68) for the quarter
Ended the quarter with cash and cash equivalents of $20.4 million
Reports revenue of $5.6 million for the quarter
Reports loss from operations of $7.2 million for the quarter
Reports non-GAAP Cash EBITDA Loss2 of $5.4 million for the quarter
ENGLEWOOD, Colo., May 09, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO) today announced financial results for the quarter ended March 31, 2017. Key highlights for the first quarter of 2017 and key subsequent events included:

On April 28, 2017, Gevo signed a supply agreement with HCS Holding GmbH (HCS) to supply isooctane under a five-year offtake agreement. HCS is a manufacturer of specialty products and solutions in the hydrocarbons sector, operating under such brands as Haltermann Carless. In the first phase of the supply agreement, HCS will purchase isooctane produced at Gevo’s demonstration hydrocarbons plant located in Silsbee, Texas, commencing in May 2017. The pricing is fixed over the first phase and Gevo estimates that this could generate up to $2-3 million of gross revenue per year.  In the second phase of the supply agreement, HCS agreed to purchase 300,000 gallons of isooctane per year, with an option to purchase an additional 100,000 gallons of isooctane per year, under a five-year offtake arrangement upon commencement of production at Gevo’s first commercial hydrocarbon facility. The supply agreement contains a pricing formula which is intended to provide Gevo a fixed margin. Gevo expects to supply this isooctane from its first commercial hydrocarbons facility, which is likely to be built at Gevo’s isobutanol production facility located in Luverne, Minnesota (the “Luverne Facility”).

On April 19, 2017, the holder of Gevo’s outstanding Convertible Senior Secured Notes, due June 23, 2017 (the “2017 Notes”), and Gevo entered into an Exchange and Purchase Agreement (the “Purchase Agreement”) pursuant to which the holder agreed to exchange (the “Exchange”) all $16.5 million aggregate principal of the existing 2017 Notes for Gevo’s newly created 12.0% Convertible Senior Secured Notes due 2020 (the “2020 Notes”).   The Exchange and the issuance of the 2020 Notes require stockholder approval due to the potential issuance of more than 19.99% of Gevo’s outstanding common stock upon conversion of, or related to, the 2020 Notes. On April 19, 2017, Gevo and the holder of the 2017 Notes also entered into the Eleventh Supplemental Indenture relating to the 2017 Notes. This provided for, amongst other things, the elimination of the $2.6 million interest reserve for the 2017 Notes. As a result, these funds were released on April 20, 2017, which resulted in an increase to Gevo’s cash and cash equivalents by $2.6 million.

Assuming the Exchange occurs following stockholder approval, Gevo expects that its current cash and cash equivalents are sufficient to fund Gevo into 2018 without any additional financings

Copyright  2017