Gevo (NASDAQ:GEVO) Files An 8-K Other Events
Item 8.01 of this Current Report on Form 8-K is incorporated by reference into this Item 5.02.
Item 8.01 Other Events.
On March 31, 2020, Gevo, Inc. (the “Company”) announced that, due to the impact the COVID-19 pandemic has had on the economy and the Company’s industry, the Company has suspended production operations at its production facility in Luverne, Minnesota (the “Luverne Facility”) for the foreseeable future. In connection with the suspension of operations and the overall economic disruption caused by the COVID-19 pandemic, the Company also terminated 30 employees who worked at both the Luverne Facility and at the Company’s corporate headquarters in Colorado.
In response to the impact of the global COVID-19 pandemic, each of Patrick R. Gruber, the Company’s Chief Executive Officer, Christopher M. Ryan, its President, Chief Operating Officer and Chief Technology Officer, L. Lynn Smull, its Chief Financial Officer, Geoffrey T. Williams, Jr., its General Counsel & Secretary, and Carolyn M. Romero, its Vice President—Controller and Principal Accounting Officer (collectively, the “Officers”) will voluntarily accept 20% reductions to their base salaries. These reductions will be effective as of April 1, 2020 for a period of 90 days thereafter. In connection with the 20% salary reduction, the Officers will be granted Company stock in the form of restricted stock awards in an amount equal to the 20% reduction. Certain remaining employees that earn above a certain dollar threshold have also agreed to take a 20% salary reduction over the next three months, with the 20% portion to be paid in the form of restricted stock awards. With these steps, the Company expects to save several million dollars of cash burn during 2020.
About Gevo (NASDAQ:GEVO)
Gevo, Inc. (Gevo) is a renewable chemicals and next generation biofuels company. The Company has developed a technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstock. It has two operating segments: the Gevo, Inc. segment and the Gevo Development/Agri-Energy segment. Its Gevo, Inc. segment is responsible for research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Its Gevo Development/Agri-Energy segment is responsible for the operation of its Agri-Energy Facility and the production of ethanol, isobutanol and related products.