Codexis, Inc.'s (NASDAQ:CDXS) micro cap stock fell on Friday after the biofuels and biochemicals company announced it will no longer receive its funding from Royal Dutch Shell for its efforts to convert biomass into fuel.
"We are expecting and are planning for Shell to deliver notice of a reduction in funding under our collaborative agreement," chief executive officer John Nicols said in a statement released after the close of regular U.S. trading yesterday. Nicols added he does not expect to receive any funding after October 31.
According to Bloomberg, the Redwood, California-based company is currently working with Shell and Cosan SA INdustria and Comercio of Brazil to improve yeast strains that will increase production at mills that convert sugar cane into usable ethanol. If it succeeds, it plans to increase its partnership with Shell to receive the rights to sell its CodeXyme technology to others in the market.
But without funding, investors may not see the stock as attractive.
As of 3:36 on August 10, Codexis shares were down 19.7 percent, or 61 cents, to $2.49 each.
