(Updates with comment from CEO in fourth paragraph.)
July 31 (Bloomberg) -- Gevo Inc., a U.S. biofuel producer backed by French oil company Total SA, fell the most in 22 months after selling $18 million in shares to fund a renovation of its Minnesota biofuel facility.
Gevo declined 29 percent to 51 cents at the close in New York, the most since September 2012.
Proceeds from the sale will help the Englewood, Colorado- based company complete modifications on its plant in Luverne, which now produces isobutanol and ethanol simultaneously, Gevo said today in a statement.
The capital raise “carries us well into 2015,” Chief Executive Officer Pat Gruber said today in a telephone interview. “The reason we could do it is because we could show people the progress at the plant.”
The company sold 30 million shares at 60 cents each. Each share came with a warrant to buy one half of a share for 85 cents that expires in August 2019. Cowen & Co. LLC led the financing.
Gevo makes isobutanol, which may be blended with gasoline or converted into hydrocarbon fuels and chemicals, from corn and plant waste. The company previously sought to manufacture that compound exclusively.