Solazyme (SZYM) was the bio oil from algae IPO stock my friend was all excited about. It had shot up to a price of like $30 a share on the IPO. I told him to avoid it like the plague. Here's what I can find on them now:
TerraVia Holdings, Inc. (formerly
Solazyme) was a publicly held
biotechnology company in the
United States. TerraVia used proprietary technology to transform a range of low-cost plant-based sugars into high-value oils and whole algae ingredients. TerraVia supplies a variety of sustainable algae-based food ingredients to a number of brands, which have included
Hormel Food Corporation,
Utz Quality Foods Inc., and Enjoy Life Foods.
[1] TerraVia also sold its own culinary algae oil under the Thrive Algae Oil brand.
Solazyme, Inc., was founded on 31 March 2003, with the mission of utilizing
microalgae to create a renewable source of energy and transportation fuels. Founders Jonathan S. Wolfson and Harrison Dillon, who met while attending
Emory University, started the company in Wolfson's garage. About their partnership, Dillon said: "
Neither of us wanted to go work for some giant organization where we were a tiny cog in a huge wheel. We wanted to make a difference and create something that had never existed before.”
[2]
In 2013 Dillon announced his decision to step down from his full-time position as CEO and member of Board of Directors of Solazyme and shift to a long-term consulting role focused on further developing the breadth of the technology platform and advising on intellectual property strategy.
[3]
Wolfson continued on as Chairman and CEO of Solazyme until August 2016 when he stepped down and assumed the role of Executive Chairman of the Board.
TerraVia appointed Apu Mody, former President of Mars Food America, as new CEO and a member of the Board of Directors, in August 2016.
[4]
Initial Focus[edit]
In 2004 and 2005, Solazyme began development of an algal molecular biology platform, and identified and initiated a platform for microalgae-based oil production. The company then expanded focus on skin and personal care products.
Solazyme continued development of the algal molecular biology platform in 2006. Key microalgae strains were identified to produce oil that could be easily converted into fuels and chemicals. Through this process, Solazyme coincidentally discovered an extract from algae that demonstrated an ability to increase cell regeneration and to reduce inflammation, while protecting from UV light damage, and thereby creating alguronic acid. The company later expanded its focus to include nutrition.
Solazyme Soladiesel shown in the company laboratory.
In September 2007, Solazyme received a $2 million grant from the
National Institute of Standards and Technology, signed a joint development agreement with
Chevron through its division Chevron Technology Ventures, began operating in commercially sized standard industrial fermentation equipment (75,000-liter scale), worked with a third party refiner to demonstrate the compatibility of the oil with standard refining equipment, and produced over 400 liters of microalgae-based oils.
In January 2008, Solazyme was featured in Fields of Fuel, which was played at the Sundance Film Festival in Park City, Utah. At the event, it presented a Mercedes Benz C320 fueled with its Soladiesel brand of algal fuel.[5]
Also in January 2008, the company announced a partnership with Chevron Technology Ventures to explore the commercialization of algal fuel.[6] Later that year, the company stated that it had produced the world's first jet fuel derived from an algal source.
In 2009, Solazyme was awarded approximately $22 million from the
United States Department of Energy for the construction of an integrated biorefinery project. It also formed a contract with the
United States Department of Defense to deliver microalgae-based marine (renewable F-76) diesel fuel to the
United States Navy.
[7]
In 2011, the company announced it had produced over 283,000 liters of military-spec diesel (HRF-76) for the United States Navy. The initial fuel production for phase 1 of a 550,000 liter contract was completed ahead of schedule.
Initial public offering[edit]
In May 2011, Solazyme set terms for its
initial public offering. The company planned to raise $160 million by offering 10 million shares at a price range of $15 to $17 and ended up selling 7,901,800 shares for $20 each in its first day of trading.
[8]
Investment banking and securities firm
Goldman Sachs reported in July 2011 that with the commercialization of new oil products, Solazyme stock had become less risky.
[9] The bank initiated coverage with a top rating and $31 target. In a note to clients, it said Solazyme (
Nasdaq:
TVIA) stood to boost sales and become more stable now that it had partnered with major agribusinesses like
Bunge Limited.
[10]
