BioAmber Inc. has inked an agreement to purchase Mitsui & Co Ltd.'s minority stake in its Sarnia joint venture. The announcement was made in its second quarter financial results release earlier this week.
Following the closing of the transaction, BioAmber will own 100% of the BioAmber Sarnia production facility. Mitsui's divestiture of its equity stake in the Sarnia joint venture follows a review of their previously announced corporate strategy. Mitsui will still continue to distribute BioAmber's bio-succinic acid in Asiaand other markets.
Given Mitsui's longstanding presence in Canada and its shareholding in BioAmber Inc., the parties negotiated terms that allowed Mitsui to achieve its corporate objectives while enabling BioAmber Inc. to assume full ownership of the Sarnia facility.
"This transaction is a meaningful opportunity for BioAmber shareholders", said Fabrice Orecchioni, president and COO at BioAmber. "Now that the Sarnia plant is ramping up, full ownership enables BioAmber to retain 100% of projected profits and explore new opportunities with potential partners for the Sarnia facility while continuing to benefit from Mitsui's marketing and distribution capabilities, especially in Asia."
Revenue highlights from the second quarter
- Sales of bio-succinic acid were a quarterly record of $4.1 million, a 64% increase over Q2 2016 and 94% over Q1 2017 revenues
- Nine new customers began buying bio-succinic acid in the second quarter. That brings the total of new customers for the first half of the year to 16
- Launch of BIO-SA pharmaceutical grade
- Operating expenses in Q2 2017 were 29% lower than in Q1 2017