Replies to post #6953 on Gevo Inc (GEVO)

[The Rainmaker]

The last paragraph says if GEVO gets bought out they also have to buyout the warrants.

In the event of a fundamental transaction, as described in the Warrants, and generally including any merger with or into another entity, sale of all or substantially all of the Company’s assets, tender offer or exchange offer, or reclassification of the Company’s common stock, then each warrant holder of Warrants shall become entitled to receive the same amount and kind of securities, cash or property as such holder would have been entitled to receive upon the occurrence of such fundamental transaction if the holder had been, immediately prior to such fundamental transaction, the holder of the number of shares of common stock then issuable upon exercise of such holder’s Warrants. Additionally, following any fundamental transaction that is also a change of control, as described in the Warrants, then if elected by the warrant holder via written notice delivered to us within 30 days following such change of control, the Company must acquire (or cause the successor entity to acquire) all of the electing holder’s warrants outstanding as of the effective date of such change of control by paying to such holder, at the Company’s option, either common stock (or qualifying securities of the successor entity) or cash, in each case in an amount equal to the Black-Scholes valuation of the unexercised portion of such holder’s warrants that remained as of the effective date of such change of control.