Path to Profitability and Use of Proceeds
Gevo intends to use a portion of its current cash and cash equivalents to pursue its previously disclosed strategy. First, Gevo intends to deploy capital at its specialty production facility in Luverne, Minnesota (the “Luverne Facility”) to make certain changes and improvements to produce low-carbon ethanol side-by-side with low-carbon isobutanol. By focusing on low-carbon ethanol in the near term, debottlenecking production, while adapting and optimizing the Luverne Facility’s energy and equipment infrastructure to use lower amounts of lower fossil-based energy sources, Gevo believes that it can increase revenues to make the Luverne Facility profitable on a non-GAAP Cash EBITDA basis.2
Second, Gevo plans to deploy capital to continue to strategically develop its isobutanol and related hydrocarbon businesses. In addition to low-carbon ethanol production, Gevo also believes that it could become profitable on a non-GAAP Cash EBITDA basis2 if it is able to obtain binding offtake agreements for its isobutanol and related hydrocarbon products that justify an expansion of the Luverne Facility whereby, upon obtaining adequate additional funding, Gevo would convert the Luverne Facility primarily to the production of isobutanol at scale, with some percentage of such isobutanol volumes to be further processed into hydrocarbons such as its alcohol-to-jet fuel and isooctane products.
About Gevo
Gevo is a leading 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 bio-based 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, MN. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, TX, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water. Learn more at our website: www.gevo.com.
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