Patrick Gruber, chief executive of Colorado-based bio-fuels producer Gevo, got an investor cold shoulder this week.
Gevo has reached sales agreements with Japan Airlines, Delta, Alaska and other airlines for its next-generation fuel. But the firm surprised investors Monday morning when it sold $150 million in equity at $4.50 a share, with warrants that could double the take to close to $300 million.
Gevo's value dropped 33% this week to about $3 per share, down about 65% from its 52-week high of $9.65. That compares with a 20% overall decline of the Russell 2000 index of small companies over the past year.
