Gevo to acquire Red Trail Energy assets for $210 mln; shares rise

Gevo

12/09/2024 16:54

(Updates)
    ** Shares of U.S.-based renewable fuels company Gevo Inc
 GEVO.O  rise 26.44% to 94 cents 
    ** Co to buy ethanol production plant and carbon capture and
 sequestration assets from Red Trail Energy for $210 mln
    ** GEVO expects to finance the transaction with a
combination of asset-level debt and cash from the balance sheet
    ** Deal expected to close by 1Q25
    ** Co says it expects the acquisition to make its adjusted
EBITDA positive in 2025
    ** For the quarter ended June 30, GEVO had reported adj.
EBITDA loss of $15.3 mln
    ** Including session's move, stock down 19.59% YTD

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com))