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.