The loan is a significant milestone for the Sarnia plant and contributes
All amounts are in Canadian dollars.
SARNIA, ON, Feb. 19, 2014 /CNW Telbec/ - BioAmber Inc. (NYSE and
EURONEXT Paris: BIOA), an industrial biotechnology company producing
sustainable chemicals, today announced that its subsidiary BioAmber
Sarnia Inc. has secured a $10 million interest free loan from
Agriculture Canada for the 30,000 MT succinic acid plant currently
under construction in Sarnia, Ontario, Canada. The loan, which was
secured through the Department's Agri-Innovation Program, will be
reimbursable in equal yearly installments from 2015 to 2024.
The loan was officially announced today by Minister Gerry Ritz, at an
event that took place in Sarnia. The event was also attended by senior
representatives of Mitsui & Co., BioAmber's partner in the Sarnia
plant, and other government officials at the local, provincial and
federal levels. The event took place on the construction site of the
Sarnia plant and showcased the progress being made.
BioAmber Sarnia had previously received $35 million in support from
government organizations including Sustainable Development Technology
Canada, the Federal Economic Development Agency for Southern Ontario
and the Ontario Ministry of Economic Development, Trade and Employment.
"We are very appreciative of the support that the Agri-Innovation
Program has provided to our Sarnia plant," said Jean-Francois Huc,
BioAmber's Chief Executive Officer. "This is a great example of how
government can support Canadian farmers, create jobs and reinvigorate
the manufacturing sector, while also making a meaningful contribution
to climate change," he added.
"Our government remains focused on creating new opportunities for
Canadian farmers and businesses to grow and prosper. BioAmber's
innovative project will help enhance the bottom line of producers by
using a corn derivative as agricultural feedstock while generating jobs
in the Sarnia area," said Canada's Agriculture Minister Gerry Ritz.
"We are actively negotiating additional loans for Sarnia that will
further ease the investment burden for BioAmber, which is an early
stage company. Our goal is to get Sarnia operational in early 2015 and
these loans will help ensure that we have the capital needed to ramp up
production and become a profitable company," added Mike Hartmann,
BioAmber's Executive Vice President.
BioAmber (NYSE and EURONEXT Paris: BIOA) is an industrial biotechnology
company producing sustainable chemicals. Its proprietary technology
platform combines industrial biotechnology and chemical catalysis to
convert renewable feedstock into sustainable chemicals for use in a
wide variety of everyday products including plastics, resins, food
additives and personal care products. For more information visit www.bio-amber.com
This press release contains forward-looking statements, including
statements related to the timing of the completion of our planned
facility, our goal of securing additional loans and becoming a
profitable company. All statements other than statements of
historical fact contained in this press release are forward-looking
statements. These statements often include words such as "believe,"
"expect," "anticipate," "intend," "plan," "estimate," "seek," "will,"
"may" or similar expressions. Forward-looking statements are subject to
a number of risks and uncertainties, many of which involve factors or
circumstances that are beyond BioAmber's control. BioAmber's actual
results could differ materially from those stated or implied in
forward-looking statements due to a number of factors, including but
not limited to, risks detailed in BioAmber's most recent registration
statement on Form S-1 filed with the Securities and Exchange
Commission, as well as other documents that may be filed by the Company
from time to time with the Securities and Exchange Commission. In
particular, the following factors, among others, could cause results to
differ materially from those expressed or implied by such
forward-looking statements: the Company's limited operating history,
the inability of the Company to execute on its manufacturing expansion
strategy, including the construction of our planned facility in Sarnia,
Ontario, the inability of the Company to comply with milestone
covenants contained in certain of its agreements, the Company's limited
sales of bio-succinic acid to date, the Company's inability to obtain
additional financing, the Company's inability to leverage its
bio-succinic acid technology to develop and commercialize derivatives
of bio-succinic acid and other bio-based building block chemicals, and
a decrease in demand for bio-succinic acid, bio-based 1,4 BDO and other
bio-succinic acid derivatives. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee that the events and circumstances
reflected in the forward-looking statements will be achieved or occur
and the timing of events and circumstances and actual results could
differ materially from those projected in the forward-looking
statements. Accordingly, you should not place undue reliance on these
forward-looking statements. All such statements speak only as of the
date made, and we undertake no obligation to update or revise publicly
any forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE: BioAmber Inc.
For further information:
BioAmber Investor Contact
LifeSci Advisors, LLC
1350 Avenue of the Americas 28th Floor
New York, NY 10019