By midmorning, shares had tumbled 8.3% to $12.01.
The San Francisco-based business said it intends to offer $100 million in convertible senior subordinated notes due 2019 as well as 5 million shares of its common stock in a separate offering.
Underwriters of the offering of senior notes will also be granted a 30-day option to purchase up to an additional $15 million in notes. The notes will be convertible into common stock at the then-applicable conversion rate prior to their maturity.
Underwriters of the common stock offering will have a 30-day option to purchase up to an additional 750,000 shares.
Solazyme said in a statement that it will use net proceeds "to fund capital expenditures, working capital and general corporate purposes."
Goldman Sachs will act as underwriter for the senior notes offering. Goldman Sachs and Morgan Stanley will act as dual book-running managers for the stock offering.
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TheStreet Ratings team rates SOLAZYME INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOLAZYME INC (SZYM) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share."