BioAmber Sarnia Secures $10 Million Interest Free Loan From Agriculture Canada
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.
BioAmber Investor Contact
Michael Rice LifeSci Advisors, LLC 1350 Avenue of the Americas 28th Floor New
York, NY 10019 646-597-6979 email@example.com
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-0- Feb/19/2014 21:15 GMT
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