Replies to post #11980 on Gevo Inc (GEVO)

[uksausage]

no the 33.333m at $4.50 is the $150m cash they get now

The warrants can be exercised later at $4.37 later by the companies if they want to or they expire. At that time an additional $150m or so will come into the coffers but the companies acquiring the warrants with the 33m shares could immediately sell at current market price of say say $10 making a nice profit at that time.

Price action on this pretty standard funding round was ridiculous. if it wasn't such a cheap stock I would be buying all the options. could say 3 months out (since the current bear market will be over).

[duderaja]

They can't exercise the warrants until the price is at least 4.37 so they are not dilutive until then. That's why I said we should be back to 3.86. No deletion on the warrants until they hit.

[Dutch1]

What makes me wonder, is what’s in it for the institutional investors who got into thus deal?

Wouldn’t they normally get a discount on a offering? Or receive warrants to buy shares at a discount as an extra to the deal?

It doesn’t make much sense to me why they would even pay a higher price. They should have known the price would go lower after the offering.

It seems like I’m missing something.