Gevo, Inc. (NASDAQ: GEVO) stock surged dramatically at the previous close as it rose more than 72% to reach $11.030. However, it pulled back slightly in the premarket to drop -20% to $8.76.
About the Company…
Gevo, Inc. (NASDAQ: GEVO) is committed to transforming green energies into low-carbon fuels. This latest wave of premium clean gasoline, jet fuel, and Diesel with the ability to generate zero emissions of carbon provides competitive solutions to meet the industry requirements to reduce greenhouse gas emissions.
What happened Lately…
Gevo, Inc. (NASDAQ: GEVO)announced its entry into a definitive agreement with institutional and accredited investors to sell 43,750,000 shares of its common stock at a purchase price of $8.00 per share in a registered direct offering per Nasdaq rules. It is expected that the offering will be completed on or about January 22, 2020, subject to the satisfaction of customary closing conditions.
Citigroup is acting as the capital markets advisor to Gevo, while H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
Amounts prior to deducting the placement agent’s fees and other expenses payable by Gevo are anticipated to gross up to $350.0 million. A net profit from the offering will be used by Gevo for capital expenditures, working capital, and general corporate purposes.
Before that on January 19, 2021, President-Elect Joe Biden has announced that Gevo, Inc. co-founder Frances Arnold will join the Science team of the President-Elect. This team is responsible for harnessing the power of science to help improve people’s lives. This team will assist the Biden-Harris administration in addressing some of the biggest crises and challenges of our time, including climate change.
The two relevant new stories about the company have been quite upbeat, so the investors were overly optimistic last night to rocket the share price. Fortunately, the share price seems to have returned to its actual position this morning.