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Bioamber Inc (NYSE:BIOA) Shares Add 12% on 210,000 Ton-Per-Year Sales Contract With Vinmar International

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By on BioPharma
Bioamber Inc (NYSE:BIOA) shares were higher over 10% recently after saying late Monday that it has won a 15-year contract from Vinmar International to deliver 210,000 tons of succinic acid per year. BIOA earlier hit an intraday high of $12.32 and was most recently up 10.3% at $11.34. The stock’s 52-week range is between $3.96 and $15.05.”Securing off-take for three plants will help us to obtain project financing and accelerate the deployment of our platform,” CEO Jean-Francois Huc said in a statement. “Our partnership with Vinmar gives us the capability to expand our production capacity, gain economies of scale and guarantees the sale of a significant portion of our output.”

The industrial biotechnology company that produces sustainable chemicals said the contract guarantees sale of 10,000 tons per year for 15 years from its Sarnia, Canada, plant. It said 50% of the Sarnia capacity is under take-or-pay, with total contract demand exceeding capacity.

BioAmber and Vinmar also broadened the scope of a previously announced 100,000 ton per year 1,4 butanediol plant, to also produce 70,000 tons per year of succinic acid with Vinmar off-taking 100% of the BDO produced and 70% of the bio-succinic acid produced for 15 years .

Finally, Vinmar has also committed to off-take 75% of the production from a new, third bio-succinic acid plant with 200,000 MT per year capacity that BioAmber currently plans to startup in 2020. It said Vinmar will invest 10% or more in equity investments in each of its next two plants.

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