Amyris (AMRS) shares were higher over 7% on Thursday after the company said it has reached a memorandum of understanding under which an unnamed food ingredients and nutraceuticals firm will invest in the company and expects the collaboration to result in a doubling of annual revenue.
Amyris said it expects to receive cash representing a short-term collaboration investment of $10 million, an equity investment of up to $20 million at $1.40 per share, $100 million in annual revenue starting in 2017 connected to the production and cost improvement of fermentation molecules, and participation in the partner’s industrial fermentation facilities in Asia.
“Our current annual revenue run rate of over $100 million combined with the $100 million of annual revenue we expect from this partnership starting in 2017, should help us deliver stronger-than-expected growth in 2017 and beyond,” CEO John Melo said. “The combination of the strong pipeline of products from our new partner, the short-term collaboration payment and anticipated revenue for 2017 and beyond makes this a transformative relationship for our business.”
Amyris said the partner’s name will be kept confidential for now. The collaboration is subject to striking definitive agreements and obtaining required approvals.
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