By Colin Kellaher
Shares of Amyris Inc. saw a significant drop of over 70% during premarket trading following the company’s announcement that it has filed for chapter 11 bankruptcy. This decision is part of an operational and financial restructuring strategy.
The California-based biotechnology firm aims to enhance its cost structure, capital structure, and liquidity position while simultaneously streamlining its business portfolio. As part of this effort, the company is also looking to sell its consumer brands.
Amyris will be focusing on its core competencies, which include research and development, scaling up operations, commercialization, and applications development for sustainable ingredients derived through biofermentation.
To provide support during this challenging period, an affiliate of their current lender, Foris Ventures, has made a commitment of $190 million in debtor-in-possession financing. This funding will help sustain day-to-day operations as negotiations continue to develop a consensual plan with key stakeholders.
During premarket trading, Amyris shares dropped nearly 71% from Wednesday’s closing price of 34.2 cents, reaching 10.1 cents.
It’s important to note that shareholders generally experience significant losses in bankruptcy cases.