Rare case scenario when you’ll see so HUGE number of “securities class actions” and “class lawsuits” filings from well-known law firms against micro-cap company. Still curious what are reasons for? Let’s look at latest AMRS activities…
In press-release from April 18th 2019 Amyris announced that company assigned right to Vitamin E royalties to DSM in exchange of approximately $57 million and expected to get an extra $30–$40 million over the next three years.
Ha, too good to be true judging by Amyris’s years of history… In 8-K, filed on April 16th, AMRS reported that “in consideration for the Assignment, DSM agreed to pay the Company $57.0 million (the “Assignment Consideration”), $29.1 million of which would be paid to the Company in cash, with the remaining $27.9 million being used to pay certain existing obligations of the Company to DSM.”
Oops, $57 million announced in press release became $29.1 off the sudden; rest of millions will never come to Amyris accounts as “existing obligations of the Company to DSM”.
Evermore, these millions were not enough to repay $39.7 million of outstanding principal and accrued interest on the 9.50% notes hence AMRS “agreed to sell and issue to Foris 6,732,369 shares of Common Stock at a price of $2.87 per share…” and “warrant to purchase 5,424,804 shares of Common Stock at an exercise price of $2.87 per share, for aggregate proceeds to the Company of $20.0 million”. So, 9.50% Notes for April finally been paid but for whom future expense?
Moreover, regardless of constant drop in sales of Vitamin E on over-the-counter market Amyris is still projected of “$30–$40 million over the next three years”…
Finally – who is AMRS’s “lifesaver” that did acquire company’s 100% discounted shares? Look at Foris Ventures, LLC at your spare time – history of these lions from angel investors guaranteed that they will double their money as soon as possible and, as we guess, they are doing it right now counting by pure pump of AMRS stock trading by numerous well-known individuals with significant ordinary Joe followings.
That’s all, folks!