BioAmber, a leader in renewable materials, today announced that its Canadian subsidiary BioAmber Sarnia, a joint venture with Mitsui & Co., has secured a C$10m loan from BDC Capital (BDCC), a wholly owned subsidiary of Business Development Bank of Canada (BDC).
The loan does not contain any convertible features or warrants, and is subject to the completion of certain customary conditions. The details of the loan have been disclosed in a filing with the Securities and Exchange Commission on Form 8K.
"This loan will strengthen the balance sheet and increase the working capital of our Sarnia operating company while establishing a business relationship with BDC, an important Canadian lending institution," said Mario Saucier, BioAmber’s chief financial officer.
"Our ability to obtain such a loan speaks to the strong business case of our Sarnia plant, which is now in operation. We view this as the first step in a long-term partnership with the BDC, an organisation that could help us to further deploy our clean technology in the future."
"The financing announced today will enable BioAmber Sarnia to expand its working capital and grow its renewable chemicals business," said Jérôme Nycz, executive vice-president, BDC Capital.
"Companies such as BioAmber Sarnia are helping Canada transition toward a clean growth economy. By supporting companies that invest in clean technologies, we will help diversify and strengthen our economy while also generating jobs and prosperity for the long-term."