Amyris Soars 48% After Announcing $255M Cannabinoid Partnership

Amyris announced earlier that it has signed a binding term sheet for a planned cannabinoid development, licensing and commercialization partnership valued at up to $255M, which it notes does not include royalties once the products are commercialized, with a "confidential partner."The $255M in payments include an "upfront payment and the remainder are linked to milestones that are expected over the next 12-36 months following the signing of a definitive final agreement," Amyris said in a statement.

It added, "Amyris has a successful track record of leveraging its unique technology platform to scale No Compromise sustainable products and successfully bring them to commercialization. In addition to lab-based milestone payments, this agreement also provides for significant milestone payments for commercially scaling each product." John Melo, Amyris President, and CEO said, "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.

The dollar value of this agreement and our roster of partners who are leaders in global markets combines to be a strong endorsement of our technology platform and ability to bring No Compromise, sustainably-produced products to market. 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." Shares of Amyris are soaring 48%, or $1.50, to $4.66 in morning trading.

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