Metabolix Completes $10 Million Sale of Biopolymer Assets to CJ CheilJedang
September 19 2016 - 4:05PM
Metabolix, Inc. (NASDAQ:MBLX) announced today that it has completed
the sale of its biopolymer intellectual property and certain
equipment and inventory to an affiliate of CJ CheilJedang
Corporation (“CJ”) for a total purchase price of $10 million. The
first $2 million of the purchase price was paid by CJ on execution
of the binding letter of intent in August 2016, and the $8 million
balance was paid on closing of the transaction. In connection with
the asset sale, Metabolix also entered into a sublease with CJ
covering approximately one-third of the Company’s Woburn,
Massachusetts facility.
“Completion of the transaction strengthens our
balance sheet and provides resources to take Yield10 Bioscience
forward as our core business,” said Joseph Shaulson, president and
CEO of Metabolix. “Yield10 is developing breakthrough technologies
to significantly increase the inherent yield of food and feed
crops. As we move forward, the Yield10 team will be focused on
advancing our technology platforms, generating proof points on our
portfolio of novel yield traits and forming collaborations around
key crops.”
In July, Metabolix announced its new strategic
direction and a related restructuring designed to bring staffing
levels to approximately 20 people with an annual net cash burn rate
in the range of $5 million once completed. The Company plans to
provide an update on its Yield10 Bioscience business in the coming
weeks.
About Metabolix
Metabolix, Inc. is implementing a strategic plan
under which the Company has wound down its legacy PHA biopolymer
business and Yield10 Bioscience will become its core business, with
a focus on developing disruptive technologies for step-change
improvements in crop yield. Yield10 is leveraging Metabolix’s
extensive track record of innovation based around optimizing the
flow of carbon intermediates in living systems. Yield10 is working
on new approaches to improve fundamental elements of plant
metabolism through enhanced photosynthetic efficiency and directed
carbon utilization. Yield10 is advancing several yield traits in
development in crops such as camelina, canola, soybean and
corn. The Company is based in Woburn,
Mass.
For more information, visit
www.metabolix.com. (MBLX-G)
For more information on Yield10 Bioscience, visit
Yield10.
Safe Harbor for Forward-Looking
Statements
This press release contains forward-looking
statements which are made pursuant to the safe harbor provisions of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The
forward-looking statements in this release do not constitute
guarantees of future performance. Investors are cautioned that
statements in this press release which are not strictly historical,
including, without limitation, statements regarding the expected
results of its strategic restructuring and wind-down of its
biopolymer operations, expected future staffing and cash usage and
expectations regarding the development of the Yield10 Bioscience
business and technology, constitute forward-looking statements.
Such forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results to differ
materially from those anticipated, including the risks and
uncertainties detailed in Metabolix's filings with the Securities
and Exchange Commission. Metabolix assumes no obligation to update
any forward-looking information contained in this press release or
with respect to the announcements described herein.
Metabolix Contact:
Lynne H. Brum, 617-682-4693, LBrum@metabolix.com
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From Apr 2023 to Apr 2024