EMERYVILLE, Calif., May 11, 2017 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced the closing of the first tranche of up to $95 million in planned equity financing that the company previously announced on May 8, 2017. The first tranche, which closed today, was approximately $47 million and was led by Koninklijke DSM N.V. (Royal DSM) (AEX:DSM.AS) with participation by qualified institutional buyers and accredited investors, including some which have previously engaged in equity and/or debt investments in Amyris.
Subject to the satisfaction of certain conditions and approval by DSM's Managing Board, DSM may invest an additional $25 million in Amyris within 90 days of the closing of the first tranche. Amyris has commitments from current, long term investors that exceeds the remaining $23 million to meet the company’s $95 million objective.
DSM Development Cooperation & Revenue Implication
As part of a development cooperation with DSM, the two parties have agreed to focus on a number of short- to medium-term product development & production opportunities in vitamins and other nutritional ingredients. Amyris noted that as the companies successfully engage in these activities the revenue and margin will be accretive to Amyris’s current revenue plan.
Use of Cash for Debt Reduction
Amyris noted that of approximately $75 million in debt that it is in the process of reducing that the majority has already converted or is expected to be converted in the relative near term. As a result, outside of these conversions to reduce debt, the company expects to deploy less than $20 million of total cash raised to pay down the aggregate debt amount of $75 million.
About Amyris
Amyris is the integrated renewable products company that is enabling the world’s leading brands to achieve sustainable growth. Amyris applies its innovative bioscience solutions to convert plant sugars into hydrocarbon molecules and produce specialty ingredients and consumer products. The company is delivering its No Compromise® products across a number of markets, including specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, pharmaceuticals, and nutraceuticals. More information about the company is available at www.amyris.com.
Amyris Forward-Looking Statements
This release contains forward-looking statements, and any statements other than statements of historical facts could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events (such as the expected closing of a second tranche of financing, including the size and timing thereof, anticipated future revenue and margin resulting from the development cooperation with DSM, and expected debt reduction, including the amount, timing and form thereof) that involve risks and uncertainties. These statements are based on management's current expectations and actual results and future events may differ materially due to risks and uncertainties, including risks related to manufacturing capacity at Amyris’s Brotas facility, delays or failures in development, production and commercialization of products, liquidity and ability to fund capital expenditures, Amyris’s reliance on third parties to achieve its goals, and other risks detailed in the “Risk Factors” section of Amyris’s annual report on Form 10-K filed on April 17, 2017. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
Amyris, the Amyris logo and No Compromise are registered trademarks of Amyris, Inc. All other trademarks are trademarks of their respective owners.