Gevo Inc (GEVO)

[chenzo11]

In my experience this is a creative way to finance a company. And an effective way. The private buyers who buy these shares @$.58 generally agree to hold the shares for a designated period of time (2-5yrs). For this they are paid a dividend of 4.99%.

At a point in the future they are able to convert these shares into common shares at a pre arranged price.

Usually the private investors are already lined up for this offering. They don't make the offering and then knock on doors to see if anyone wants to buy them. This means the private investors could be made aware of possible upside that they in turn would be financing and thus benefit from this investment.

The issuance of these shares could have been tied to a deal with a major airline.

In a nutshell:
Gevo needs money for their plans to expand. They need financing but don't want to dilute the share price any further. They approach private investors with the info that they are close to signing a contract with a major airline. These investors say they are in with the announcing of this news. They get paid 4.99% to help finance the new plant which they know will be producing for the new client. Maybe there is even alittle wink that Alaska airlines is also very close to a deal but Alaska doesnt know if Gevo can handle their demand. Alaska now knows the new plant will be financed and built and will be able to handle their demand.

All just my opinion. But the AH trading does not look like it's being dumped. I bought more @.54

Cheers
Chenzo

investment.majairline.