BioAmber raises $33.6M in 2.8M share offering

July 16, 2014 |

bioamberFrom Minnesota, we hear that BioAmber priced a 2.8M share offering at $12.00 per share, and raised $33.6M. The company granted the underwriters in the offering a 30-day option to purchase up to an additional 420,000 shares of its common stock.

Credit Suisse Securities and Canaccord Genuity are acting as the bookrunning managers for the offering. Net proceeds, after underwriting discounts and commissions and other estimated fees and expenses payable by BioAmber will be approximately $31.1 million. BioAmber intends to use the net proceeds of the offering for working capital and other general corporate purposes.

It was just last week that the company announced a 210,000 ton per year take-or-pay contract for bio-based succinic acid with Vinmar International.Under the terms of the 15-year agreement, Vinmar has committed to purchase and BioAmber Sarnia has committed to sell 10,000 tons of succinic acid per year from the 30,000 ton per year capacity plant that is currently under construction in Sarnia, Canada.

Bottom line, BioAmber contineus to roll and roll. We looked at a number of the drivers in May, in “Why are all the traffic lights turning green for BioAmber?” There, we noted: 

BioAmber is avowedly pursuing a strategy based in careful aggregation of strategic partners that bring investment and offtake as well as financing relationships, while building further applications for their molecules in work with R&D partners that could be expected to translate into commercial partners down the line. Which is to say, starting with an economically and environmentally advantaged molecule and then working in partnership with downstream customers to establish markets for that molecule.

“It’s very different than the conventional biobased fuels strategy, which has been to set mandates to create market certainty, and use that to create a favorable financing environment, and encourage engagement with incumbents.”

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