amrsAmyris Inc (NASDAQ: AMRS) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a new supply and distribution agreement. As you could imagine, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The agreement;
- what we’re seeing from AMRS stock as a result; and
- what we’ll be watching for ahead.
AMRS Announces New Agreement
As mentioned above, Amyris is having an incredibly strong start to the trading session this morning after announcing a new agreement. In a press release issued early this morning, the company said that it has signed its first major supply and distribution agreement for a new product. That product is its new sugarcane-derived, zero calorie sweetener.
AMRS said that the agreement was signed with ASR Group. ASR is currently the world’s largest cane sugar refiner. The agreement is a long-term one that surrounds significant volumes of the company’s ingredient. Ultimately, the agreement guarantees ASR Group a supply of the sugarcane-derived sweetener, a key to the company’s future plans to expand its product offering with a new sweetener brand. In a statement, John Melo, President and CEO at AMRS, had the following to offer:
We’re delighted that ASR Group, a long-time leader worldwide in the sugar and sweetener markets, has become the first commercial customer and long-term partner for our sweetener… Amyris’s growth strategy depends on our ability to reach consumers. The more successful we are with consumers, the faster we will grow. Today’s announcement demonstrates significant strategic progress in becoming the leader in delivering caloric reduction to consumers.
We are continuing our commitment to help our customers achieve their health goals. We did it first with Biossance, our clean beauty skincare and now with our first major sale of our zero calorie sweetener, which provides consumers with the sweetness they love with zero calories.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Amyris, the news proved to be overwhelmingly positive. After all, this new supply and distribution agreement will likely drive substantial revenue for the company. So, it comes as no surprise that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:03), AMRS is trading at $7.75 per share after a gain of $0.39 per share or 5.30% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMRS. In particular, we’re interested in following the new partnership to see the levels of revenue generated through it. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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