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Gevo set to boost value of its IP as it acquires Butamax patents

Last updated: 13:58 23 Sep 2021 EDT, First published: 09:58 23 Sep 2021 EDT

Gevo Inc -
"Gevo is ‘all in’ on IBA-related technologies. We are finding strong commercial demand for our products. So, it simply makes sense for us to own the patent estate," said Dr Chris Ryan, chief operating officer at Gevo

Gevo Inc (NASDAQ:GEVO) announced it now has direct ownership and management over the entire known isobutanol patent portfolio of Butamax following striking an asset purchase deal with the latter and its affiliate.

The transaction, which closed on September 21, leaves Gevo as the only entity with "full rights to sublicense the entire Gevo/Butamax isobutanol and isobutanol derivatives patent estate in the fields of fuels, isooctane, industrial chemicals, isobutylene, oligomerized isobutylene, and para-xylene" and is expected to boost its intellectual property (IP) value.

Butamax has previously entered into a patent cross-license agreement with Gevo with effect from August 22, 2015.

READ: Gevo chosen by the US Department of Energy’s Argonne National Laboratory to apply GREET model to its net-zero project

"Gevo is ‘all in’ on IBA-related technologies. We are finding strong commercial demand for our products. So, it simply makes sense for us to own the patent estate," said  Dr Chris Ryan, chief operating officer at Gevo.

"In addition, it gives us more flexibility in adding to the combined patent estate and eliminates the complexity for out-licensing that existed under the Patent Cross-License Agreement."

After commissioning Peak Value IP, LLC in 2020,  its analysis yielded an indicative investment valuation of around $412 million for the full scope of the Gevo IP portfolio.

The Butamax patent estate acquisition is expected to increase Gevo’s intellectual property value, now that Gevo owns the Butamax patents, added Gevo.

Shares on Nasdaq ticked up 6% on the day to $6.68 each.

---Updates for share price---

Contact the author at giles@proactiveinvestors.com

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