BioAmber (NYSE: BIOA) announced operational and financial results for the three months and year ended December 31, 2016.
As quoted in the press release:
- 2016 sales of bio-succinic acid were $8.3 million, an increase of 281% over the previous year.
- Over 200 companies globally have now tested and qualified the bio-succinic acid produced at our Sarnia facility.
- Operations have shown greater consistency with both variable and fixed costs remaining on target, and off-specifications product below 5% in Q4.
- On December 19th, 2016, we announced a non-binding letter of intent (LOI) with CJ CheilJedang Corporation (CJCJ) to establish a joint venture in China to produce up to 36,000 metric tons of bio-succinic acid and commercialize the output in Asia. CJCJ will incur all capital costs required to retrofit their fermentation facility and ramp up production.
- We successfully completed the first two phases of the four-phase process for a $360 million loan guarantee from the U.S. Department of Energy (U.S. DOE). This is an important milestone to secure financing for our proposed second facility.
“While our Sarnia facility has continued to showcase BioAmber’s world leading disruptive bio-technology, the LOI with CJCJ validates its robust economics and provides an example of how BioAmber can further leverage its technology for the benefit of shareholders.” stated Fabrice Orecchioni, BioAmber’s President and Chief Operations Officer. “In addition to our operational success and following our recent equity raises, we have paid off our corporate debt in its entirety, and are looking to secure a Toronto Stock Exchange (TSX) listing before the end of April 2017“, he added.