Gevo, Inc. (NASDAQ: GEVO)
Gevo has been an incredibly interesting stock to follow as of late. While the company has an incredible product and has reached several key milestones throughout the year, their financial troubles and lack of communication with investors have proven concerning. Nonetheless, the stock is up big in pre-market trading today. Below, we'll talk about what we're seeing, why, and what we'll be watching for ahead.
What We're Seeing From GEVO
As mentioned above, Gevo is off to what seems to be a strong day in the market today. While the opening bell hasn't yet rung, the stock is enjoying double digit gains. Currently (8:50) GEVO is trading at $0.22 per share after a gain of $0.02 per share (10.24%) thus far today.
Why The Stock Is Gaining
As usual, as soon as one of our alert services pinged us that GEVO was making a run for the top, the CNA Finance team started digging to see exactly what was causing the movement. While it took some digging to find, we believe that we've found the cause for the gains on the stock. At the moment, investors are excited about a recent filing by the company.
In the pre-market hours, investors learned about private exchange agreements that Gevo entered into on December 20th. The agreements were entered into with certain holders of its 7.5% convertible senior notes due 2022. Under the agreement, $1.425 million in 2022 notes will be exchanged for an aggregate of 5,036,641 shares of the company's common stock. This represents a share price of approximately $0.29, a premium of 41% compared to the closing price as of December 20th. This eases investor minds with regard to debt and is leading to gains.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on GEVO. In particular, we'll be watching the company's financial position closely. We're also interested in seeing further developments with Musket and other companies that GEVO is working with. We'll keep a close eye on the news and bring it to you as it breaks!
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