Shares of synthetic biotechnology company Amyris (NASDAQ:AMRS) are down nearly 60% at the time of writing after it announced an operational and financial restructuring under its strategic transformation.
Under the move, Amyris and certain of its subsidiaries have filed for voluntary Chapter 11 proceedings in the District of Delaware. The company’s entities located outside of the U.S. are not a part of the proceedings.
With this filing, Amyris hopes to boost its cost and capital structure as well as liquidity while optimizing its business portfolio. Now, the company is planning to exit its consumer brands but plans to operate them while the sale process advances. It has also secured a commitment for a $190 million debtor-in-possession financing from its existing lender to support its day-to-day activities.
The interim CEO and CFO of Amyris, Han Kieftenbeld, believes that the company will step out of this restructuring in a financially stronger shape with a well-defined path to profitability.
Today’s price decline comes on top of an 89% price erosion in Amyris shares over the past year. Despite this fall, short interest in the stock is still at elevated levels at about 22.5%.
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