Amyris, Inc. (Nasdaq: AMRS) has officially announced its decision to undergo operational and financial restructuring. This move is designed to enhance the company's overall position and drive its transformation towards sustainable consumption through its Lab-to-Market™ technology platform and clean beauty consumer brands.

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Streamlining for Success

Amyris' restructuring initiative focuses on several key aspects to pave the way for long-term success. The company aims to improve its cost structure, capital structure, and liquidity position. This strategic overhaul will also streamline Amyris' business portfolio, allowing the organization to concentrate on its core competencies in research and development (R&D), as well as the scale-up, commercialization, and application development of its sustainable ingredients obtained through biofermentation.

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Navigating Chapter 11 Proceedings

To facilitate this restructuring process, Amyris, along with select domestic subsidiaries, has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. Notably, this legal course of action does not include the company's entities outside of the United States.

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Brand Transformation and Sale

As part of the restructuring journey, Amyris is poised to divest its consumer brands. These brands will be put up for sale, while the intent is for them to continue harnessing Amyris' cutting-edge scientific advancements and technological innovations under new ownership. Throughout the sale process, Amyris is committed to maintaining the operation of these brands, both through retail partnerships and their respective e-commerce platforms.

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Strengthened Financial Position

Amyris has secured a substantial commitment of $190 million in debtor-in-possession (DIP) financing from an entity affiliated with its existing lender, Foris Ventures. This financing will provide essential liquidity to support the company's ongoing day-to-day operations. The goal is to facilitate productive negotiations with key stakeholders and establish a mutually agreeable forward plan centered around Amyris' core capabilities. This step aims to uphold commitments to employees, customers, partners, and vendors as the restructuring progresses, subject to Court approval and adherence to the DIP budget.

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Leadership Perspective

Han Kieftenbeld, the Interim Chief Executive Officer and Chief Financial Officer of Amyris, highlighted the company's pioneering role in synthetic biology and its strong commercial success over the past two decades. He emphasized Amyris' strategic transformation to reduce costs, enhance operational efficiency, and achieve sustainable growth. Kieftenbeld expressed confidence that the current steps taken by the company are the right ones to address financial challenges and achieve a comprehensive solution that capitalizes on Amyris' scientific capabilities and technology.

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The Path Forward

Kieftenbeld reiterated the company's aspiration to become a highly efficient and productive biotechnology leader. He underlined the unwavering excitement about Amyris' long-term potential and the team's ability to deliver on the promise of synthetic biology. The restructuring process is envisioned to position Amyris as a financially stronger entity with a well-defined route to profitability. This strategic shift is expected to pave the way for sustainable growth and a meaningful impact in the realm of clean chemistry.

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Smooth Transition

Amyris has filed a series of customary motions with the Court to ensure a seamless transition into Chapter 11. These motions seek to continue regular operations, uphold commitments to employees and stakeholders, and maintain customer programs and policies. The company remains committed to honoring its obligations to vendors for goods and services received post-filing.

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As Amyris embarks on this transformative journey, the company remains focused on its core capabilities, poised for growth, and driven by the potential to make a lasting impact through innovation and sustainable practices.