Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Amyris Inc (NASDAQ:AMRS) jumped 12% today after announcing a new financing round.
So what: Amyris announced yesterday that it would be selling $75 million of convertible notes due in 2019, and today priced the new debt. The notes will come with a 6.5% interest payment, and will be convertible to 267.037 shares of Amyris, which indicates a $3.74 conversion price.
Now what: The good news is that Amyris is getting new debt at a relatively low interest rate, although this is dilutive to shareholders long term. The bad news is that Amyris needs the money at all after burning through $105 million from operations last year. Amyris is a high-potential stock, but until I see consistent earnings and an end to dilution, I'll take the conservative approach, and avoid buying altogether.
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Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.