Gevo, Inc. (GEVO) may have announced its largest production quarter of isobutanol to date, but lack of production through January could be costing the biofuels company revenue.

The company completed its 1-for-20 reverse stock split on Thursday, Jan. 5, in the hopes of maintaining its NASDAQ Capital Market listing. (See Also: Gevo Announces Reverse Stock Split.)

Shares were up almost 1 percent during Monday’s trade, closing at $4.09 but dipped again in after-hours trading to end at $3.98. However, during trade on Tuesday, Jan. 10, share prices plummeted by 8.31 percent to close at $3.75.

Upgrade Plans for Luverne

Gevo announced plans to conduct further upgrades at its Luverne, Minnesota, plant while the facility is offline. The plant upgrades were halted on Dec. 21, 2016, for repairs and maintenance to be completed on the plant’s regenerative thermal oxidizer (RTO), a piece of pollution control equipment.

Throughout the fourth quarter of 2016, the facility in Luverne was used to produce 190,000 gallons of isobutanol, the highest-ever quarterly production level that has now surpassed production targets.

While production of isobutanol has temporarily been halted, the plant still managed to produce 2.8 million gallons of ethanol last quarter.

Aside from producing isobutanol in its production facility in Luverne, Minnesota, Gevo also produces ethanol and high-value animal feed in the same plant. The company also operates a bio-refinery in Silsbee, Texas, where is produces renewable jet fuels and other bio-based products.

However, with the plant still closed, the lack of productivity is costing Gevo revenues. It’s anticipated that repairs should be completed and the plant should be back online before the end of January.

Gevo is committed to a sustainable bio-based economy, developing and producing renewable technology, chemical products and next-generation biofuels as bio-based alternatives to traditional petroleum-based products.

 

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