AMRS - Amyris: Elevated Cash Usage Causes Investors To Head For The Exits

• Discussing sell-off in the shares after the company's Q1 report revealed a much higher cash usage than anticipated by market participants.
• Even when assuming cash usage to trend down for the remainder of the year, Amyris would likely run out of funds by the end of Q4 at the latest.
• Management is looking to raise $250+ million in net proceeds from a new ingredient licensing deal in the second half of the year.
• Company reiterated its previously issued financial outlook for 2022.
• While I reiterate my grave concerns regarding management's ability to execute on its stated targets, I am upgrading the shares from "sell" to "hold" based on discounted valuation and very limited near-term liquidity concerns.

For further details see: