Gevo Studies Strategic Alternatives
US renewables company Gevo is reviewing strategic alternatives for its future and has appointed Cowen & Company as a financial advisor. The two are seeking to engage with interested parties and investors. Gevo has not stated whether the review could include a potential sale.
“The board is thoroughly committed to exploring strategic and financial alternatives while simultaneously supporting management in the development of Gevo’s technology and business,” said Ruth Dreessen, chairman of Gevo’s board of directors. She added that pursuing both of these paths was in the best interests of the company’s stakeholders.
The company, which ended a four-year patent dispute with rival Butamax in August 2015, has a target to produce between 750,000 and 1 million gallons of isobutanol and 15 million gallons of ethanol this year at its facility in Luverne, Minnesota.
It said in its first-quarter 2016 report that it was working to make its processes more efficient and ramp up isobutanol production. The company had cash and cash equivalents of $8.7 million as of end March.
