BioAmber Secures CAD$20 Million Loan for Sarnia Plant
MINNEAPOLIS, MN, June 23, 2014
MINNEAPOLIS, MN, June 23, 2014 /PRNewswire/ - BioAmber Inc. (NYSE: BIOA), an
industrial biotechnology company producing sustainable chemicals, today
announced that its Canadian subsidiary BioAmber Sarnia Inc., a joint venture
with Mitsui & Co., has secured a CAD$20 million commercial loan from a
financial consortium led by Export Development Canada and including Farm
Credit Canada and Comerica Bank.
The CAD$20 million senior secured loan will bear interest at an initial rate
of 8%, tied to an agreed-on floating rate calculation from disbursement. The
loan's principal will be reimbursed over a period of six and a half years,
commencing three (3) months after the completion of the commissioning and
start-up phase of the Sarnia plant.
The drawdown on the loan is subject to customary conditions, including
continued progress on the construction of the Sarnia plant. The CAD$20
million will be used to complete the ongoing construction of the Sarnia plant
and fund its start up and commissioning.
When completed in early 2015, the Sarnia plant will be the world's largest
bio-based succinic acid production facility. The plant will convert Canadian
agricultural products into bio-based succinic acid, a value added building
block chemical that is used in a wide variety of everyday products. BioAmber
projects that over 90% of the 30,000 MT annual capacity will be exported.
BioAmber (NYSE:BIOA) is an industrial biotechnology company producing
sustainable chemicals. Its proprietary technology platform combines industrial
biotechnology and chemical catalysts 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
About Export Development Canada
EDC is Canada's trade finance agency, providing financing and insurance
solutions locally and around the world to help Canadian companies of any size
respond to international business opportunities. As a profitable Crown
corporation that operates on commercial principles, EDC works together with
private and public-sector financial institutions to create greater capacity
for Canadian companies to engage in trade and investment.
About Farm Credit Canada
FCC is Canada's leading agriculture lender, with a healthy portfolio of more
than $26 billion and 20 consecutive years of portfolio growth. FCC is strong
and stable – committed to serving the industry through all cycles, and to
being socially and environmentally responsible. FCC provides financing,
insurance, software, learning programs and other business services to
producers, agribusinesses and agri-food operations. Employees understand
agriculture and are committed to the success of customers and the industry.
With FCC in the market, producers benefit, agriculture benefits, rural Canada
benefits and so do all Canadians. For more information, visit www.fcc.ca.
About Comerica Bank
Comerica Bank's Technology and Life Sciences Division is one of the United
States' leading technology banking practices, offering a wide range of
financial services tailored to corporate customers, entrepreneurs and
professionals. Veteran bankers provide credit and financial services and
products to young, growing, professionally backed technology and life sciences
companies, as well as their more mature counterparts. The Technology and Life
Sciences Division serves all major U.S. technology centers from offices
coast-to-coast and its headquarters in Palo Alto, California. Comerica Bank is
a subsidiary of Comerica Incorporated (NYSE: CMA), a financial services
company that is among the 25 largest U.S. banking companies. For more
information, visit www.comerica.com.
This press release contains forward-looking statements, including statements
related to the completion of our planned facility and the disbursement of the
loan. 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
SOURCE BioAmber Inc.
Contact: BioAmber Investor Contact, Michael Rice, LifeSci Advisors, 250 West
55th Street Suite 16B, New York, NY 10019, 646-597-6979,
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