TerraVia loss narrows, but company seeks buyer5 May 2017
The company lost $4 million less than the year-ago period on revenues slightly down, but is looking for a buyer that could result in a sale of all, substantially all, or a portion of the company.
Algae company TerraVia has announced financial results for the first quarter ended March 31, 2017."We met all of our commercial and operational goals for the first quarter as we executed against our focused strategy. We remain on track to meet our 2017 guidance," said Apu Mody, CEO of TerraVia. "In particular, we're excited about the market traction we are seeing with AlgaPrime DHA, which is showing early signs of being a blockbuster new product that can become a vital feed ingredient for aquaculture and potentially other nutrition markets. Also, as we disclosed today, the company now has a defined timeframe in place for the consideration of strategic alternatives that will chart the future course for TerraVia and our valuable technology platform."TerraVia says it has entered into a forbearance agreement with certain of its convertible debt holders as the company continues to work on a plan to restructure its debt and has set a timeframe in which to conclude these negotiations. The company notes that it is actively engaged in a process with strategic and financial parties that could result in a sale of all, substantially all, or a portion of the company prior to termination of the forbearance period.Total revenue for the period was $4.5 million compared with $4.9 million in the first quarter of 2016. GAAP net loss narrowed to $22.6 million for the first quarter of 2017, from a net loss of $26.5 million in the prior year period."Our results for the first quarter reflect early momentum for AlgaPrime DHA combined with diligent cost and capital management," said Tyler Painter, COO and CFO of TerraVia. "As we move through the process of seeking to restructure our balance sheet and evaluating strategic alternatives, we continue to take prudent steps to reduce cash and capital commitments while keeping the company on track with our growth goals for the year."
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