Gevo, Inc. (NASDAQ:GEVO) reported that its shareholders accepted a modification that supports a reverse stock split of the due shares of company’s common stock. It will be done by a ratio of at least one-for-two but restricted up to one-for-twenty prior to January 6, 2017. The exact ratio will be fixed at a whole figure within this range by Gevo Board in its sole discretion. The company plans to report the exact ratio for this reverse stock split after it has been decided by the Board of Directors.
The management view
Pat Gruber, the CEO of Gevo, said that it is an important outcome for them as they project it will permit them to maintain their listing on the NASDAQ, thus preserving the stock liquidity. More importantly, if the stock is not traded on a national securities exchange, it could probably have permitted certain holders of their convertible notes to speed up the debt repayment.
The firm closed last quarter with nearly cash of $31.1 million, and they would prefer utilizing this capital for growing the operation rather than utilizing it all to compensate creditors. They would like to appreciate their stockholders for their planned support of Gevo and they expect continuing the firm’s path towards profitability.
The company will continue to put emphasis on optimization work to enhance the Luverne Plant at its existing scale, but importantly with a stance towards considerably expanding the Luverne Plant. They intend to enhance the production processes with the intent of refining robustness and consistency of manufacturing, increasing production volumes, and probably producing premium grades of isobutanol made for specific apps.
This optimization task could result in company requiring to add more equipment such as tanks, controls, distillation columns, pumps, etc., processes or systems in the future plans at the Luverne Plant. Gevo continue to make robust progress with its production at Luverne and its initiatives to create markets for their products.