5:10 a.m. Aug. 21, 2020
- By Tomi Kilgore
Gevo's stock sinks on heavy volume, after share offering announcement in wake of previous day's rocket rideShares of Gevo Inc. plunged 20% in premarket leading volume Friday, after the the renewable gasoline and fuel company took advantage of a more-than tripling in price in the previous session to announced a share offering. Trading volume was 35.2 million shares ahead of the open, compared with the full-day average of 37.4 million shares. The company said it reached a deal with investors to sell 38.46 million shares at $1.30 a share, which is 28.6% below Thursday's closing price of $1.82. The stock had rocketed 232.7% on volume of 991.1 million shares on Thursday, after the company said it entered into a renewable hydrocarbons purchase and sale agreement with a Trafigura Group Pte Ltd., which brings Gevo to over $1.5 billion of revenue in long-term contracts. The stock has still lost 21.2% year to date through Thursday, while the S&P 500 has gained 4.8%.