Amyris (NASDAQ:AMRS) stock is falling on Thursday after the company filed for Chapter 11 bankruptcy protection.
According to a press release from Amyris, the company is entering bankruptcy to facilitate a restructuring of its business. It claims that doing so will help it improve its cost structure, capital structure, and liquidity position.
To go along with that, Amyris is seeking to streamline its business portfolio during the bankruptcy. This will see it better focus on its main operations, such as R&D. Part of that includes scaling up, commercializing, and developing its biofermentation platform for sustainable ingredients.
In addition to this, Amyris said that it will exit the consumer brands business. This will have the company putting this business up for sale. However, it plans to still collaborate with the brand even if it changes ownership.
As for continuing operations, lender Foris Ventures has agreed to supply the company with $190 million of debtor-in-possession financing. This funding, if approved by the bankruptcy court, will allow Amyris to continue normal operations throughout its restructuring.
What This Means for AMRS Stock
A bankruptcy filing is never good news for a company’s shares, and that includes AMRS stock. It’s possible the company will face delisting from the Nasdaq Exchange due to this filing. If that happens, the company may choose to trade its shares on an over-the-counter exchange.
As far as stock movement goes, today’s news pushed investors to sell shares of AMRS stock. As a result, more than 6.5 million shares have traded hands this morning. That’s already above the company’s daily average trading volume of about 5.2 million shares.
AMRS stock is down 66.8% as of Thursday morning.
Investors can find more of the latest stock market news ready to go below!
We’ve got breakdowns of all the biggest stock market stories for Thursday! That includes what’s going on with shares of Galera Therapeutics (NASDAQ:GRTX) stock, PHAXIAM Therapeutics (NASDAQ:PHXM) stock, and Capri (NYSE:CPRI) stock today. All of that info is available at the following links!
More Stock Market News for Thursday
- Why Is Galera Therapeutics (GRTX) Stock Down 83% Today?
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- Why Is Capri (CPRI) Stock Up 58% Today?
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
