GEVO -6.50% 0.282
SZYM -1.79% 2.20
PEIX -3.45% 7.84
Gevo Provides Corporate Update
Announces Initiatives to Improve Company-Wide Cash Flow
Gevo, Inc. 1 hour ago GlobeNewswire
ENGLEWOOD, Colo., Jan. 20, 2015 (GLOBE NEWSWIRE) -- Gevo, Inc. (GEVO), the world's only commercial producer of renewable isobutanol, today provided a corporate update, including announcing certain cost savings initiatives to improve the Company's overall cash flow.
- Gevo's average monthly corporate-wide EBITDA burn rate (excluding stock-based compensation) is expected to decrease by almost 40% to approximately $1.50-1.75 million in 2015, versus a comparable estimated average monthly rate of $2.50-2.75 million in 2014.
- Gevo reduces headcount at Gevo's headquarters in Englewood from 56 to 33.
- Dr. Patrick Gruber, Gevo's Chief Executive Officer, volunteers to take 25% of his base salary in the form of Gevo stock, through a deferred compensation program.
- Gevo has developed potentially disruptive new technologies that use ethanol as a feedstock for the production of hydrocarbons, renewable hydrogen, and other chemical intermediates, to augment its use of isobutanol as a feedstock for the alcohol-to-hydrocarbons business.
- In 2015, Gevo is targeting:
Signing a binding agreement with at least one licensee for its isobutanol technology; and
Establishing multiple new strategic partnerships to accelerate the development of its hydrocarbons business, inclusive of Gevo's new ethanol-to-hydrocarbons technologies.
Key corporate updates include:
Corporate
- As part of Gevo's ongoing expense management strategy designed to extend the Company's operating runway, Gevo decreased its corporate headcount by 23 employees, or 41% of the Englewood-based staff. These reductions come mainly from the technology group and are effective immediately. While this decision translates into meaningful costs savings for the Company, it has also been driven by the advanced stage of Gevo's isobutanol technology and thus fewer resources are needed at this time. Gevo has determined this to be an opportune time to scale down the team to focus primarily on technology optimizations, as well as to support the commercial operations at Luverne and isobutanol licensing.
- Dr. Patrick Gruber has volunteered to take 25% of his base salary (or $125 thousand per annum) in the form of Gevo stock, through a deferred compensation program to be implemented by the compensation committee of Gevo's board of directors.