Gevo, Inc. (NasdaqCM:GEVO) entered into an asset purchase agreement to acquire Substantially All Assets of Red Trail Energy, LLC (OTCPK:REGX) for $210 million on September 10, 2024. The transaction is subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions, including obtaining the approval of Red Trail Energy?s equity holders, procurement of financing for the acquisition and regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act. The Purchase Agreement have been unanimously approved by the Board of Directors of Gevo and Red Trail Energy. The transaction is expected to close by the first quarter of 2025. Gevo expects to finance the transaction with a combination of asset level debt and cash from the balance sheet. The acquisition is expected to make Gevo's Adjusted EBITDA positive in 2025. The acquired assets include a 65 million gallon per year ethanol plant and a CCS site with a capacity of 1 million metric tons per year. As of December 11, 2024, The transaction approved shareholders of Red Trail Energy. The transaction was funded with a combination of Gevo equity capital and a $105 million senior secured term loan facility from Orion Infrastructure Capital.

Ocean Park Securities, LLC acted as financial advisor for Gevo, Inc. W. Morgan Burns, Michael B. Abbott, Andrew Anderson, Christopher B. Berendt, Brian C. Pickard, Colin G. Harris, Julian E. Harrell, Brian S. Fennerty, Jason Deppen, Robert B. Leonard, Paul S. Moe, Eli M. Isaacs, Jason D. Kimpel of Faegre Drinker Biddle & Reath LLP acted as legal advisor for Gevo, Inc.

Gevo, Inc. (NasdaqCM:GEVO) completed the acquisition of Substantially All Assets of Red Trail Energy, LLC (OTCPK:REGX) on January 31, 2025.