Sustainable chemicals maker BioAmber Inc. of Montreal has been unable to find a buyer for its assets and is seeking court approval to liquidate.
In a July 30 news release, officials said that the firm plans to “solicit liquidators to bid on the acquisition and disposal” of its assets, including a succinic acid plant in Sarnia, Ontario.
Succinic acid made from biomass can be used as a feedstock in the production of bioplastics. The Sarnia plant opened in late 2015 and has annual production capacity of almost 70 million pounds.
During the liquidation process, BioAmber will “continue to actively engage with qualified bidders and other interested parties to determine if…a transaction that would result in the continuation of the company's operations is still possible,” officials added.
The company estimates the process will be finished by Aug. 14. The company will engage with interim lender Maynbridge Capital of Vancouver and all other secured lenders to determine the best going-forward strategy.
“We are clearly disappointed that the qualified bidders did not place an acceptable offer for Bioamber,” CEO Richard Eno said in the release. “Most importantly, I'd like to thank our dedicated and highly capable employees for their outstanding service to the company.”
BioAmber raised more than $150 million in stock offerings between 2013 and 2015. The firm has partnerships with materials makers Lanxess and Mitsui & Co., plastics and petrochemicals distributor Vinmar International Ltd. and agricultural giant Cargill.
In 2017, BioAmber posted sales of $14.9 million, up almost 80 percent vs. 2016. But the firm lost almost $102.2 million for the year after a 2016 loss of $28.4 million.