BIOAMBER
Sales in 2016 fail to meet revenue guidance / Operating losses fall / Threat of class actions from shareholders as market reveals concerns
Bio-succinic acid producer BioAmber (Montréal, Québec / Canada; www.bio-amber.com) has reported an operating loss of USD 29.6m (EUR 27.5m) for 2016, compared with a loss of USD 38.1m in 2015. Full-year sales were up to USD 8.3m from USD 2.2m in 2015.
Fabrice Orecchioni, BioAmber’s president and chief operations officer, said: “While our Sarnia facility has continued to showcase BioAmber’s world-leading disruptive biotechnology, the LOI with CJCJ [the letter of intent with CJ CheilJedang Corporation (Seoul / South Korea; www.cj.net) to set up a bio-succinic acid joint venture in China – see Plasteurope.com of 02.01.2017] validates its robust economics and provides an example of how BioAmber can further leverage its technology for the benefit of shareholders. 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.”
During 2016, the 281% year-on-year rise in sales was driven by an increase in volumes of bio-succinic acid sold from the company’s Sarnia operation. However, the company missed its previously issued revenue guidance by USD 1.3m. It has been reported that this was due to pricing pressures and the failure of an order from a large customer due to a technical problem at the customer’s plant. General and administrative, R&D and sales and marketing expenses were down year-on-year, the company said.
Despite Orecchioni’s upbeat outlook, at least two US legal investigations and class actions, including lawsuits to recover losses suffered by BioAmber investors, are planned against the company, based on what is considered a poor financial performance.
Orecchioni succeeded Jean-Francois Huc at the helm of BioAmber after Huc’s resignation as president and CEO of the renewables company earlier this month due to personal reasons – see Plasteurope.com of 02.03.2017.
Fabrice Orecchioni, BioAmber’s president and chief operations officer, said: “While our Sarnia facility has continued to showcase BioAmber’s world-leading disruptive biotechnology, the LOI with CJCJ [the letter of intent with CJ CheilJedang Corporation (Seoul / South Korea; www.cj.net) to set up a bio-succinic acid joint venture in China – see Plasteurope.com of 02.01.2017] validates its robust economics and provides an example of how BioAmber can further leverage its technology for the benefit of shareholders. 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.”
During 2016, the 281% year-on-year rise in sales was driven by an increase in volumes of bio-succinic acid sold from the company’s Sarnia operation. However, the company missed its previously issued revenue guidance by USD 1.3m. It has been reported that this was due to pricing pressures and the failure of an order from a large customer due to a technical problem at the customer’s plant. General and administrative, R&D and sales and marketing expenses were down year-on-year, the company said.
Despite Orecchioni’s upbeat outlook, at least two US legal investigations and class actions, including lawsuits to recover losses suffered by BioAmber investors, are planned against the company, based on what is considered a poor financial performance.
Orecchioni succeeded Jean-Francois Huc at the helm of BioAmber after Huc’s resignation as president and CEO of the renewables company earlier this month due to personal reasons – see Plasteurope.com of 02.03.2017.
23.03.2017 Plasteurope.com [236501-0]
Published on 23.03.2017