NEW YORK (TheStreet) -- Shares of TerraVia (SZYM) are soaring by 25.13% to $2.38 on heavy trading volume Tuesday afternoon, as the company transitioned to a new name and announced an agreement with Unilever (UL), a food, home and personal products company.
"As announced last week, we are moving forward with a refined focus on our food, nutrition and specialty ingredients portfolio, and we are actively transitioning to the TerraVia banner," CEO Jonathan Wolfson said in a statement.
Previously, the company was called Solazyme.
TerraVia, which creates renewable oils and bioproducts, announced a five-year, multi-oil supply agreement with Unilever to purchase renewable algae oils for use in personal care products.
The South San Francisco-based company expects the Unilever agreement to represent total revenue of more than $200 million over the course of the agreement.
"In an era when most of the innovation taking place in food is in the reformulation, repackaging, and marketing of existing products and ingredients, we are different in that we have built and offer true innovation with new, and unique ingredients based on algae," the company said in a statement.
Additionally, the company posted its 2015 fourth quarter results after yesterday's closing bell.
TerraVia reported an adjusted loss of 32 cents per diluted share, narrower than the loss of 43 cents per share that analysts were expecting.
Revenue for the period was $10.4 million, lower than Wall Street's projections of $11.3 million.
About 6.57 million of the company's shares were traded by this afternoon, well above its average volume of 504,832 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D- on the stock.
This is driven by several weaknesses, which 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 covered.
Among the areas the team feels are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SZYM