Amyris signs agreement for up to $60M in funding
08 August 2013
Amyris, Inc., a renewable chemicals and fuels company, entered into agreement for the sale of convertible notes in a private placement for up to $60 million in cash proceeds. Under the terms of the agreement, one of Amyris’s largest stockholders, Temasek, agreed to purchase $35 million of the notes in an initial tranche and, at Amyris’s election, up to $25 million in a second tranche.
Under the agreement, Total Energies Nouvelles Activités USA will participate for approximately $7.6 million in the first tranche and $5.4 million in the second tranche of additional funding, representing its pro rata portion of the offering, which it would acquire by cancellation of existing promissory notes previously issued to it by Amyris.
Both tranches are subject to Amyris’s satisfaction of closing conditions, including stockholder approval of the transaction at an upcoming special meeting of stockholders.
This financing agreement is an affirmation of our largest stockholders’ continued support for our strategy. This funding will provide us with financial flexibility to help us achieve our business objectives. Our progress to date developing and manufacturing molecules developed under our proprietary synthetic biology platform, including ramp up of our new industrial fermentation facility for the production of farnesene in Brazil, continues to demonstrate our leadership in the sector.—John Melo, Amyris President & CEO
The purchase agreement for the offering contemplates the sale of senior convertible promissory notes in two tranches—one of $35 million in initial principal amount and one of $25 million in initial principal amount.
The initial tranche of $35 million is expected to close following stockholder approval at a required special meeting of stockholders, which is scheduled to take place in September.
"Temasek, agreed to purchase $35 million of the notes in an initial tranche and, at Amyris’s election, up to $25 million in a second tranche."
Is this good or bad?
Posted by: kelly | 08 August 2013 at 03:21 PM