Shares of Gevo Inc. (GEVO) 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%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 21, 2020 09:10 ET (13:10 GMT)
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