Developer and producer of sustainable ingredients for the health & wellness, clean beauty and flavors & fragrances markets Amyris has signed a binding term sheet for a planned cannabinoid development, licensing and commercialization partnership valued at up to $255 million (not including significant royalties once the products are commercialized) with a confidential partner. The $255 million 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 says it 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.

As Amyris’s proprietary technology platform has become more widely known, the company claims it has become the recognized leader in bringing products to market faster and more cost-effectively compared to any other company. Amyris says it is the preferred partner for the world’s leading companies for its technology and its success in bringing high performance, No Compromise products to market.

According to the company, the announcement is another example of Amyris being sought out for its advanced technology platform, this time for the development of cannabinoids. Both parties are said to be committed to executing a final definitive agreement by the end of March with development to begin immediately and commercialization of products expected within the next 18-24 months assuming appropriate regulatory approvals.

Amyris claims it is leading the way in sugarcane fermentation among private and publicly-traded companies alike, having brought many products to market with commercial success. These products include a World Health Organization recommended first-line treatment for malaria that has saved thousands of lives and many products in the flavours and fragrances, personal care and health and wellness markets. The company’s most recent successful product developed is its new, zero calorie sweetener. This product is said to have quickly become the leader in sales volume for the natural sweeteners category and the fastest growing product in the Amyris portfolio.

“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,” said John Melo, Amyris President & CEO. “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.”

Products derived from fermentation are anticipated by Amyris to have several significant benefits for market participants and consumers. These include:

+ Consistent purity and dosage depending on formulation due to highly controlled fermentation-based production without the variability resulting from plant-based ingredients

+ Fermentation high purity, which should support lower regulatory risk

+ Significantly reduced cost over traditional production methods

+ Improved yield of economically difficult-to-source compounds with sufficient purity and efficacy

+ 100% free from pesticides, as ingredients are not farm or grow operation sourced

+ Sustainably-sourced products derived from rainfall-hydrated, natural sugarcane feedstock that results in less water and land usage relative to growing cannabinoids

The partner is expected to provide initially lab-based and later commercial scale milestone cash payments in tranches for the development and scaling of technology to produce CBD. In return, the partner will be granted a license to commercialize these products. Total expected aggregate cash payments assuming development and commercial viability are expected to add up to $255 million.