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ENGLEWOOD, Colo. - Verity Holdings, LLC, a Gevo, Inc (NASDAQ: GEVO) subsidiary, has formed a partnership with Minnesota Soybean Processors (MnSP) to implement a proprietary track and trace software designed to increase the value of sustainably grown soybeans. Gevo, currently trading at $1.13 per share with a market capitalization of $262 million, has seen its stock decline by approximately 31% over the past six months. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 8.36, indicating robust short-term financial stability. This collaboration, announced today, is focused on enhancing export premiums for MnSP while simplifying compliance and audit processes.
The software provided by Verity will allow MnSP to document the sustainability attributes of soybeans, linking the value of sustainable agriculture practices to the final products. Kimberly Bowron, President of Verity, emphasized that the technology enables producers to verify and communicate the benefits of their sustainable practices to farmers, processors, and buyers globally. While Gevo holds more cash than debt on its balance sheet, InvestingPro data reveals the company is rapidly burning through its cash reserves, with negative free cash flow of over $100 million in the last twelve months.
MnSP operates a comprehensive soy processing plant in Brewster, Minnesota, which includes a soy crush plant, a refinery, and a biodiesel-production facility. The partnership aims to leverage MnSP’s extensive facilities and Verity’s advanced data verification to tap into international markets that value sustainability certifications, particularly for products derived from regeneratively grown soybeans.
Verity’s digital MRV (Measure, Report, Verify) platform, underpinned by distributed ledger technology, provides a robust framework for carbon project development and accounting services. These services are intended to maximize the environmental and economic value of carbon and sustainability efforts across business systems.
Gevo, Inc. is recognized for its commitment to producing renewable energy solutions, including sustainable aviation fuel, motor fuels, and chemicals, while supporting rural communities and job creation. The company also operates one of the largest dairy-based renewable natural gas facilities in the U.S. and an ethanol plant with an adjacent carbon capture and sequestration facility.
Minnesota Soy Processors, striving to become a leading independent soybean crush facility, values the potential of this partnership to deliver superior value to customers and shareholders by ensuring complete traceability from farm to finished products.
The details of this partnership are based on a press release statement and reflect the companies’ strategies to integrate sustainability into their operations and product offerings. With revenue of $16.9 million in the last twelve months and current trading levels suggesting the stock may be undervalued, investors seeking deeper insights can access comprehensive analysis and 14 additional ProTips through InvestingPro’s detailed research reports, which provide expert analysis on over 1,400 US stocks.
In other recent news, Gevo, Inc. reported its fourth-quarter financial results for 2024, revealing a 30% year-over-year revenue increase to $5.7 million, primarily driven by its Renewable Natural Gas (RNG) segment. However, the company’s earnings per share (EPS) and revenue fell short of analyst expectations, with EPS at -$0.14 compared to the forecasted -$0.0607, and revenue at $1.99 million against an anticipated $3.77 million. Despite these misses, H.C. Wainwright maintained a Buy rating for Gevo, citing the company’s significant cash reserves of $259 million as a positive factor.
The company’s operating expenses for the quarter were approximately $21.9 million, contributing to a net loss of $17.9 million. Gevo is targeting a positive run-rate adjusted EBITDA in 2025, as it continues to expand its operations and technology development. The company generated $15.8 million in revenue from its RNG subsidiary over the year, although it faced an adjusted EBITDA loss of $11.3 million for the quarter.
Gevo aims to close financially on its Alcohol to Jet (ATJ) 60 project by the end of 2025 and projects adjusted EBITDA from its North Dakota plant to be between $30 million and $60 million, and $9 million to $18 million from RNG in 2025. The company’s CEO, Patrick Gruber, emphasized the dual focus on cost competitiveness and carbon abatement. Despite the challenges, Gevo remains committed to improving its financial position and expanding its renewable energy initiatives.
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