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Gevo Falls to Record Low as It Says It Expects to Raise $11.9 Million From Offering of Shares

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Gevo (GEVO) shares fell nearly 30% to a record low after the company said it expected to raise $11.9 million from a public offering of shares and warrants.

Gevo said on Tuesday it agreed to sell 5,680,000 Series G units, with each Series G unit consisting of one share of common stock, a Series K warrant to purchase one share of common stock and a Series M warrant to purchase one share of common stock, at a public offering price of $1.90 per Series G unit.

It has also agreed to sell 570,000 Series H units, with each Series H unit consisting of a pre-funded Series L warrant to purchase one share of common stock, a Series K warrant to purchase one share of common stock and a Series M warrant to purchase one share of common stock, at a public offering price of $1.89 per Series H unit.

The offering is due to close on Feb. 17.

Gevo intends to use 15% of the net proceeds from the offering to pay down a portion of its outstanding 10% convertible senior secured notes due 2017 and the balance for general corporate purposes.

The new 52-week range is $1.59 to $27.20.

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