Amyris signs agreement for multi-million funding
Amyris, a renewable chemicals and fuels company, has entered into agreement for the sale of convertible notes in a private placement for up to $60 million (€44.9 million) in cash proceeds.
Under the terms of the agreement Temasek, one of Amyris's largest stockholders, agreed to purchase $35 million of the notes in an initial tranche and, at Amyris's election, up to $25 million in a second.
Both tranches are subject to Amyris's satisfaction of closing conditions however, including stockholder approval of the transaction at an upcoming special meeting of stockholders.
‘This funding will provide us with financial flexibility to help us achieve our business objectives,’ says John Melo, Amyris CEO. ‘Our progress to date includes developing and manufacturing molecules developed under our proprietary synthetic biology platform and the ramping up of our new industrial fermentation facility for the production of farnesene in Brazil.’
The initial tranche of $35 million is expected to close following a stockholder approval meeting scheduled for September. The second tranche is contemplated to be issued at Amyris's option at any time within 24 months of the signing of the purchase agreement and only following the satisfaction of certain closing conditions.
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.