Amyris enters definitive securities purchase agreements in US$112m recapitalization

04 Feb 2020 --- Ingredients company Amyris has entered into definitive securities purchase agreements in a US$112 million recapitalization anchored by Foris Ventures. Foris exercized existing warrants to convert approximately US$70 million of the biotech company’s debt into common stock, valued at around US$2.87 per share. In addition to the significant debt reduction, the company raised US$42 million in new financing led by Foris and several other long-term holders.

“Through the combination of this transaction, an expected 2020 reduction of operating expense spend over 2019 and the support of our long term shareholders, we believe we have the necessary resources in place to achieve sustainable positive cash generation from our operations. We are very pleased with the continued support of our long term shareholders,our strong 2019 revenue and a better than expected start to 2020 growth and performance,” says John Melo, Amyris President and CEO.

The company expects to set its Q4 and full year 2019 investor call in the coming weeks and will provide investors with a comprehensive update on business growth and capital structure improvements at that time. The financing closed yesterday, subject to customary closing conditions.

This move follows the company’s announcement last November detailing the purchase of its existing CVI Heights convertible note by two “accredited investors” and subsequent exchange of such note for new unsecured convertible senior notes (“Notes”) in the amount of US$66 million in a private exchange. As a result, the CVI Heights debt will be retired, thus curing the prior default of this debt, and Amyris will incur the new Notes as debt. The Notes will mature on September 30, 2022.

In other notable developments last year, Amyris reported the first milestone for its US$300 million cannabinoid (CBD) collaboration with LAVVAN, earning its first payment of US$10 million in April. The companies entered into a partnership for the multi-million dollar development of a fermented CBD ingredient in February. The previously undisclosed partner, LAVVAN, is a newly-formed company backed by players from across the pharmaceutical, cannabis and financial sectors, which intends to bring the first fermentation-derived CBD products to market.

Edited by Benjamin Ferrer