Amyris Inc (NASDAQ: AMRS)
AMRS CEO, John Melo, acted on his promise to restructure the company's near-term debt maturities and to strengthen the AMRS balance sheet. On Thursday, he delivered the results. A news alert from Trade Ideas provided the lead.
AMRS Gets Extensions
AMRS announced that approximately $44 million in total debt due in Q1 2017 will be extended into 2018 and 2019, enabling flexibility for revenue expansion during the coming year.
Within the new terms, AMRS stated that they have signed a definitive agreement with Fidelity Management and Research Company to exchange $15.3 million dollars of 3% notes scheduled to be paid in March of 2017 into AMRS existing 9.5% notes that are due in 2019, buying over two years of additional repayment terms.
Additionally, AMRS has extended debt totaling $28.6 million dollars held by Stegodon Corporation, which was due in February of 2017, to October of 2018, adding over eighteen months of repayment time.
AMRS Revenue Expansion
The debt restructure puts AMRS in a relatively strong position for 2017, as the company has said that they are in the process of delivering upon another record quarter for business. Creating revenue expansion with less debt overhang reduces a great portion of the near-term risk and concern for shareholders.
AMRS concentrates on renewable products that enable leading brands throughout the world to achieve sustainable growth. AMRS's innovative bioscience solutions convert plant sugars into hydrocarbon molecules and produce specialty ingredients and consumer products.
AMRS's "No Compromise" products are being delivered across a number of consumer markets, including specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, and pharmaceuticals.
AMRS has seen a 52-week trading range between 31¢ and $1.74 a share and is currently trading at 73¢. Volume has averaged over four million shares per day during the previous 90 days.
Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.
While I seek to uncover emerging companies that I feel have true value and potential, it's important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.
I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.
Additional Disclosure: I have no position in any stock mentioned and no plans to initiate any positions within the next 72 hours.
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