Archer Daniels (ADM) Terminates JV w/ Metabolix (MBLX); Metabolix Adjusts Outlook, to Review Options
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Financial Fact:
Selling, general, and administrative expenses: 1.53M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Metabolix, Inc. (Nasdaq: MBLX), announced that the Archer Daniels Midland Company (NYSE: ADM) has given notice of termination of the Telles, LLC joint venture for PHA bioplastics.
The effective date of the termination will be February 8, 2012. Metabolix will hold a webcast conference call for investors today at 5:00 pm EST.
Telles was established as a joint venture between Metabolix and ADM in July 2006. The joint venture sells PHA-based bioplastics, including Mirel and Mvera, in the US, Europe and other countries.
ADM recently undertook a strategic review of its business investments and activities and made the decision to focus resources outside of Telles. As the basis for the decision, ADM indicated that the projected financial returns from the alliance were too uncertain. After the termination, ADM will retain its manufacturing plant in Clinton, Iowa that has been producing Mirel resins for Telles.
All Metabolix technology that was used in the joint venture, including intellectual property rights, will revert solely to Metabolix. In addition, Metabolix will have no ongoing obligation under the ledger account which was funded by ADM to finance the Clinton plant and certain Telles operating costs.
Metabolix is currently conducting a strategic review of its business priorities and plans for 2012. The Company plans to continue focus on development of renewable industrial chemicals and noted that it has continued to make good forward progress and remains in ongoing discussions with potential partners. In light of the Telles termination, Metabolix plans to retain a core team in its bioplastics group to provide continuity with the technology and market. Due to the termination of the agreement with ADM, Metabolix is now free to open discussions with alternative manufacturing and commercialization partners for PHA bioplastics.
In conjunction with a shift in priorities for 2012, Metabolix will restructure its bioplastics business and downsize operations with details being finalized. Metabolix ended 2011 with an unaudited cash and investment balance in excess of $78 million. In 2012 the Company currently expects to take restructuring charges of approximately $2 to $3 million, resulting in estimated cash usage in 2012 between $23 and $28 million. Metabolix currently expects to end 2012 with cash and investment balances between $50 and $55 million. Metabolix is committed to effectively managing its cash resources while creating significant value from its core technology platforms. The Company will report 2011 year end financial results and will discuss plans for 2012 during its year end earnings call on March 6, 2012.
The effective date of the termination will be February 8, 2012. Metabolix will hold a webcast conference call for investors today at 5:00 pm EST.
Telles was established as a joint venture between Metabolix and ADM in July 2006. The joint venture sells PHA-based bioplastics, including Mirel and Mvera, in the US, Europe and other countries.
ADM recently undertook a strategic review of its business investments and activities and made the decision to focus resources outside of Telles. As the basis for the decision, ADM indicated that the projected financial returns from the alliance were too uncertain. After the termination, ADM will retain its manufacturing plant in Clinton, Iowa that has been producing Mirel resins for Telles.
All Metabolix technology that was used in the joint venture, including intellectual property rights, will revert solely to Metabolix. In addition, Metabolix will have no ongoing obligation under the ledger account which was funded by ADM to finance the Clinton plant and certain Telles operating costs.
Metabolix is currently conducting a strategic review of its business priorities and plans for 2012. The Company plans to continue focus on development of renewable industrial chemicals and noted that it has continued to make good forward progress and remains in ongoing discussions with potential partners. In light of the Telles termination, Metabolix plans to retain a core team in its bioplastics group to provide continuity with the technology and market. Due to the termination of the agreement with ADM, Metabolix is now free to open discussions with alternative manufacturing and commercialization partners for PHA bioplastics.
In conjunction with a shift in priorities for 2012, Metabolix will restructure its bioplastics business and downsize operations with details being finalized. Metabolix ended 2011 with an unaudited cash and investment balance in excess of $78 million. In 2012 the Company currently expects to take restructuring charges of approximately $2 to $3 million, resulting in estimated cash usage in 2012 between $23 and $28 million. Metabolix currently expects to end 2012 with cash and investment balances between $50 and $55 million. Metabolix is committed to effectively managing its cash resources while creating significant value from its core technology platforms. The Company will report 2011 year end financial results and will discuss plans for 2012 during its year end earnings call on March 6, 2012.
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