EMERYVILLE, Calif., Aug. 8, 2013 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), a leading renewable chemicals and fuels company, today announced it entered into agreement for the sale of convertible notes in a private placement for up to $60 million in cash proceeds.
Under the terms of the agreement, one of Amyris's largest stockholders, Temasek, agreed to purchase $35 million of the notes in an initial tranche and, at Amyris's election, up to $25 million in a second tranche. Both tranches are subject to Amyris's satisfaction of closing conditions, including stockholder approval of the transaction at an upcoming special meeting of stockholders.
" This financing agreement is an affirmation of our largest stockholders' continued support for our strategy. This funding will provide us with financial flexibility to help us achieve our business objectives," said John Melo, Amyris President & CEO."Our progress to date developing and manufacturing molecules developed under our proprietary synthetic biology platform, including ramp up of our new industrial fermentation facility for the production of farnesene in Brazil, continues to demonstrate our leadership in the sector," Melo concluded. PURCHASE TERMS The purchase agreement for the offering contemplates the sale of senior convertible promissory notes in two tranches—one of $35 million in initial principal amount and one of $25 million in initial principal amount. The initial tranche of $35 million is expected to close following stockholder approval at a required special meeting of stockholders, which is scheduled to take place in September. The terms of this first tranche will be detailed in our regulatory filings associated with this transaction and include a 15% discount to the 60-day volume weighted average price on the date we signed the purchase agreement. The second tranche of up to $25 million is contemplated to be issued at Amyris's option at any time within 24 months of the signing of the purchase agreement and only following the satisfaction of certain closing conditions detailed in our regulatory filing, including approval of Amyris's shareholders at a required special meeting of stockholders. Among the closing conditions of the second tranche are specified production and operational metrics associated with Amyris's farnesene production facility located in Brotas, Brazil. Under the agreement, Total Energies Nouvelles Activités USA will participate for approximately $7.6 million in the first tranche and $5.4 million in the second tranche of additional funding, representing its pro rata portion of the offering, which it would acquire by cancellation of existing promissory notes previously issued to it by Amyris.