Thursday, July 7, 2022

Amyris Inc (NASDAQ:AMRS) In A Complex Spot

Amyris Inc (NASDAQ:AMRS) did a reverse stock split earlier this month to maintain its listing on the NASDAQ. The company has a market cap of $64.36 million with now 19.81 million shares outstanding. Each 15 shares of the company’s issued and outstanding common stock combined and converted into one issued and outstanding share of common stock, par value $0.0001 per share on June 6th. However, the wire is currently flooded with news of securities fraud lawsuits against AMRS, so let’s take all these things into account.
Here is a quote from the law firm acting on the shareholders’ behalf (one set of shareholders, to be specific): Amyris made false and/or misleading statements and/or failed to disclose: that in the first quarter of 2017, the Company made a decision to take an equity stake in one of Blue California’s affiliates that focused on the sweetener market instead of cash payment under the license agreement; that, due to this decision, Amyris could not recognize $10 million in fourth quarter and fiscal year 2016 revenue from the license agreement with Blue California; and that, as a result of the above, the Company’s public statements were materially false and misleading at all relevant times. When this news was released, the stock price of Amyris fell materially, which caused investors harm according to the Complaint.
Amyris Inc (NASDAQ:AMRS), according to company documents, provides various alternatives to a range of petroleum-sourced products worldwide.
The company uses its industrial bioscience technology to design microbes primarily yeast, as well as to convert plant-sourced sugars into renewable ingredients. It produces and sells Biofene that converts to squalane, which is used as an emollient in cosmetics and other personal care products; and natural oils and aroma chemicals for the flavors and fragrances market.
AMRS also provides renewable solvents, polymers, and lubricants for industrial markets; Biofene ingredients for nutraceuticals and vitamins market; and renewable fuels for transportation fuels markets. It has a collaboration partnership with Total S.A. to produce and commercialize Biofene-based diesel and jet fuels.
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In January of this year, AMRS was trading above $12 and now it has fallen hard to the low $3 range. Some analysts are saying we have not seen the bottom either.
After the reverse stock splits, which is generally regarded as an accounting trick to not let shares hit the cellar, the company CEO issues this quote in the press.
“With $86 million of debt retired and our financing needs largely behind us, we are now very focused on continuing to execute on our strategy,” said John Melo, President & CEO. “We are delivering significant disruption for our partners in cosmetic skin care, vitamins and flavors and fragrances and we are on track to more than double our product revenue this year to over $60 million and continuing delivery on our stable $50-60 million of annual collaboration revenue. Upon the expected close of the second tranche of financing, we believe we are done with major fund raising and are excited about our focus on making the planet healthier and helping our partners become more sustainable.”
The quote has an air of being slightly detached from the reality of the company and its falling price. Not to mention, the lawsuits in the works by shareholders.
Amyris Inc (NASDAQ:AMRS) might still have some way to go before reaching its bottom. We wrote about this stock late last year and were impressed with its resiliency, but times have changes. AMRS is in a low place and some very impressive sales news will need to be coming soon in order to turn the ship around. We will wait and see. For continuing coverage on $AMRS and our other breakout picks, sign up for our free newsletter today and get our next hot stock pick!

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