Issue Date: March 27, 2017
BioAmber investors warned
The accounting firm Deloitte has told bio-succinic acid maker BioAmber that the company’s 2016 financial reports raise “substantial doubt about its ability to continue as a going concern.” Deloitte pointed to BioAmber’s negative working capital, accumulated deficit, and net loss from operations. The company’s revenues for the year of $8.2 million were up substantially from 2015 as a result of higher sales from its new facility in Sarnia, Ontario, but fourth-quarter sales disappointed. In a conference call with analysts, BioAmber Chief Operating Officer Fabrice Orecchioni said the company contended with lower prices for competing petrochemicals during the year. In addition, the plant’s purification process operated at 40-50% of capacity. But the company said it is making process improvements and expects prices and sales to grow considerably this year. In addition, it is confident that it can obtain debt financing, if needed, to operate for the next 12 months.
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