ENGLEWOOD, CO – Gevo (NASDAQ:GEVO), Inc., an industrial organic chemicals manufacturer, announced on Thursday that it has been granted an additional 180-day compliance period by Nasdaq to meet the exchange's minimum bid price requirement.
The company, which is currently listed on the Nasdaq Capital Market under the ticker symbol NASDAQ:GEVO, now has until February 24, 2025, to ensure that its common stock's bid price closes at or above $1.00 per share for a minimum of ten consecutive business days.
This extension follows an initial warning received by Gevo on February 29, 2024, when Nasdaq notified the company that its stock had closed below the $1.00 minimum bid price for 30 consecutive trading days. Gevo was initially given 180 calendar days, until August 27, 2024, to rectify the situation.
The notice from Nasdaq does not affect the current listing of Gevo's common stock, which will continue to be traded on the Nasdaq Capital Market. However, there is no guarantee that Gevo will regain compliance with the Minimum Bid Price Rule or maintain compliance with other Nasdaq listing requirements.
In other recent news, Gevo, Inc. has secured a deal with Shell (LON:SHEL) Global Solutions Deutschland GmbH to supply a sustainable fuel blendstock for motorsport use. The fuel, produced from sustainable feedstocks like agricultural waste, is intended to reduce carbon emissions in the racing industry. Gevo also reported progress in its Q2 2024 earnings call, highlighting its NZ one project and RNG business.
The company expects to achieve financial close for the NZ one project by year-end, and is expanding its RNG capacity with the aim for an annual production capacity of 500,000 million BTUs.
Delays in approval for the -350 pathway have impacted the expected non-GAAP adjusted EBITDA range for RNG. In addition, Gevo is in the process of securing a Department of Energy loan guarantee of approximately $900 million and is partnering with Google (NASDAQ:GOOGL) to integrate AI tools into its Verity platform.
Furthermore, Gevo has revised its employment agreements with top executives. CEO Patrick Gruber will maintain his role with an annual base salary of $650,000 and is eligible for a target annual bonus of 100% of his base salary. President and COO Christopher Ryan's amended agreement includes a base salary of $431,600, with an 80% target bonus.
InvestingPro Insights
As Gevo, Inc. navigates the challenges of meeting Nasdaq's minimum bid price requirement, investors are keeping a close eye on the company's financial health and market performance. According to InvestingPro data, Gevo holds a market capitalization of approximately $215.68 million, with a striking revenue growth of 98.34% in the last twelve months as of Q2 2024. Despite such growth, the company's gross profit margin stands at a concerning -105.98%, indicating that it spends more to produce its goods than it earns from selling them.
InvestingPro Tips highlight that Gevo has more cash on hand than debt, which could provide some financial flexibility. However, the company is quickly burning through its cash reserves, which raises questions about its long-term financial stability. Additionally, while Gevo has seen a significant return over the last week with a 24.73% price total return, analysts have concerns about the company's profitability, noting that it is not expected to be profitable this year.
For investors considering Gevo's stock, these insights may be crucial. It's also worth noting that there are over 10 additional InvestingPro Tips available, offering a more comprehensive analysis of Gevo's financial standing and market potential. These insights could help inform investment decisions as Gevo works towards meeting Nasdaq's compliance standards.
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