There’s a new bit of Amyris news that has AMRS stock flying high on Tuesday.
Amyris (NASDAQ:AMRS) has announced that it has signed a deal for partnership development, licensing and commercialization of cannabinoid products. The company isn’t currently revealing the other party in the deal.
What the Amyris news does reveal is that this partnership is worth $255 million. This includes one upfront payment to the company, as well as several others over the next 12 months to 36 months.
AMRS is also eligible to receive royalty payments in connection to the cannabinoid products. The company says that it is expecting this to result in significant royalty payments due to the size of the cannabinoid market.
“We are pleased to have been recognized by a well-capitalized partner as the company best suited to leverage fermentation-based technology in the production of the best quality and lowest cost and sustainably-produced cannabinoids,” John Melo, President and CEO of AMyris, said in a statement. “We share the mission of our partners to become the leader in sustainably-sourced CBD products in the near term as we focus on enabling the global beverage and skin care markets, including our own brands, to support the health and wellness of people and our planet.”
Amyris says that it and its partner are expecting to sign off on a final agreement by the end of March. It will begin development right after this and expects to have products ready for the market in the following 18 months to 24 months.
AMRS stock was up 41% as of noon Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
