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Damn that is interesting, but probably just an oversight on their part.
That link is extremely informative, thanks for sharing. Seeing stuff like this makes me reaffirm my thoughts of at least 100m offer but I guess we shall see shortly.
Yea can confirm the same, wonder what that’s all about.
Guess everyone thinks they’re an engineer now, yet they’ve never set foot in a plant before.
If you read the first pwc report that included the plant evaluation the only maintenance that was needed were agitators needing repaired due to metal fatigue.
The exact same thing happens to any agitation units. We had to do the same in the oil industry with our oil separation plants. Anything that rotates in a liquid is exhibited to these stresses. SS is a harder and more corrosion resistance material but it doesn’t stand up well to cyclical fatigue.
I had an old coworker that was a master pipefitter prior to the old industry. Every 3 years they had to go back to the Heinz 57 plant and replace schedule 160 SS piping because the acidity of the product ate through it. For those that don’t know schedule 160 is over an inch thick depending on the diameter.
“With flippers and haters controlling the market”... LOL, I’ve heard it all now, sorry Talari, you aren’t Tesla bro.
Me too, giving myself grey hair stressing over every tick is pointless right now. We either win or lose, and I have already accepted that fact as any other long here has as well. The DD puts us out on top in the end, the rest is out of our control.
The 21st and 28th fast approaches.
I don’t even watch the price action anymore, I’m waiting for the news.
If they were smart they would of implemented a tiered system from the start... you can’t just ball everyone into the same category. Hell if I would of known of this I would of exploited the crap out of it too.
This model works for Netflix, Hulu etc and such because of the millions of subscribers and the fact they aren’t releasing brand new content that people know they want to watch, enough to drag themselves to a movie theater.
You don’t see the likes of Vudu or other movie rental sites offering anything like this, it’s suicide.
good luck to you guys and gals here.
Guessing you’ll ask the same question next week, and everyday in between.
So they pay full price for tickets and thought that subscriber base would average and spread out the cost at $10 a month?
I guess basic math and analytics aren’t this companies strong suite.
This company is in survival mode, and will do anything to keep afloat. Including diluting shareholders here into a oblivion as we can all plainly see.
I offered the same warning on abwn and I’ll do the same here. This isn’t going back to dollars anytime soon, if ever (without a r/s). I’m not bashing, just being a realist, take off those rose colored glasses and see for yourself.
I can get a helluva lot cheaper than this, look at abwn to see the future here.
I love the sound of this every time I read it, but for those that haven’t here is an excerpt.
Bids for “assets and operations at the site” in Sarnia are being accepted until Aug. 21,” said Mica Arlette, a senior vice president with Price Waterhouse Coopers Inc., the court-appointed monitor in BioAmber’s creditor protection proceedings.
“We are continuing to meet with interested parties who may participate in the bidding process,” he said Tuesday. Some of those parties are interesting in continuing operations; others are interested in the assets, he said.
https://lfpress.com/news/local-news/interest-in-bioamber-bidding-continues/wcm/0e0f3c7f-d80f-498c-a825-c465967bc5c8/amp
The only reason I can think the impairment charge was implied was because they weren’t running at full capacity. Impairment charges can be reversed.
Agreed.
One of the comps used for the plant valuation was built in 1955 and was sitting mothballed for years. It sold for around 55m CAD if I recall and took a $30m investment before they could even utilize the asset.
This plant is 2 years old and the largest of its kind with the patents needed to utilize it to its full potential. Either I’m wrong or I’m right about this outcome, but given the facts available for anyone to research I just don’t see how we don’t come out on top.
Eno having 260k of his own money on the line is also a wonderful motivator to try and seal this deal as well. Couple more weeks and we shall know the outcome regardless.
Only takes 2 for a bidding war, but you know that already.
I’d love to think this is factual, and it very much might be the case, here’s hoping that your source is correct, we shall see shortly.
Regardless I’d imagine we should see something from pwc in the next 24 hours, they did give a date range for the update after all.
It does say 8/9-8/15, not gimme an update right now because I’m impatient.
Lol you might be playing on others ignorance about this but you definitely aren’t fooling anyone who’s worked in this type of industry in the least, myself included.
Assets exceed debt so no, they’re not insolvent. per your definition “fair market value”. Fair market value is over and above BIOAQ’s debt. So yeah, you’re both wrong as usual.
TVIA was insolvent with over 170m in debt. Bioa isn’t insolvent. So your example isn’t even comparable.
Yup, says right in the document it’s in CAD, current conversion is .76 so it totals approximately 53m US.
Most important thing here is has a stalking horse bid been put in place yet, and how much is the stalking horse bid for?
These bids are commonplace in CCAA/BK proceedings, and set a basement sell price for others to bid from and include monetary incentives for being said bidder even if they don’t win.
So who is it? PTT? Toray/Mitsui? Cargill? BASF? or maybe one of the other dozens of potential buyers listed on the pwc documents.
Regardless, being the designated stalking horse bidder is a win/win situation for all involved.
Most of the company’s debt is to the Canadian government, which is primarily long term debt.
Also the only creditors that are entitled to collect interest are secured creditors, unsecured creditors MAY pursue interest charges but it surely doesn’t mean they’ll get anything as the court has to approve it regardless.
This is all information available to anyone if you did the DD.
I’m in Maui enjoying my vacation, not watching the meaningless day to day action. Doesn’t mean I haven’t been keeping tabs though
You couldn’t pay me to rehash all the dd discussed here since December. It sure as hell doesn’t benefit any of us Longs, and we don’t NEED anyone to buy this stock because the DD is lacking in the stickies.
Only thing rehashing dd does is break it down Barney style for sidelined buyers, doesn’t help any of us who have been here in the least. The market will take this where the price is gonna go regardless.
I actually prefer people having to do their own DD at this point, not like they’re going to donate a portion of their winnings to us for putting everything on a silver platter for them.
Yea It’s safe to say no one wants current management. We all know this factory is desired though.
Liquidating isn’t even on the table.
I think some don’t realize that liquidation value is just that, the value of the components in the factory.
Thing is for a company to strip out the parts, build a new facility from scratch to house said parts and get back up to operational status would cost in total at least 150m AND the downtime to build the new factory (2 years).
No one is saving anything by waiting for this to go to liquidation. Hell a company that I think might be the buyer just built a sugar purification plant for sissinic acid production...
Boy wouldn’t that be nice? Having the most profitable plant on the planet supplied by your own low cost sugar which is your main overhead cost to begin with?
Sounds like a win/win to me.
That mention of Toray Industries is really interesting, considering Toray is owned by Mitsui.. which is who I’ve been saying is eyeing this from day 1.
Be curious to see if that comes into play. It’ll be an interesting few weeks here regardless.
I actually didn’t see that, I might have to try and dig alittle on this. Thanks for bringing it back up.
ABWN 2.0? On watch regardless.
Definitely not, wouldn’t really take much for them to offer another loan to pay off existing debt due currently and restructure the existing debt for more favorable terms. It’s a win/win for everyone.
With the right management and increasing customer demand this could easily turn out 75m gross a year.
The old ceo, oil industry crashing, developing their customer base, and corn commodity pricing is what put them in this bind, surely not lack of demand.
This is a possibility since members of the parliament are involved. Extending them a lifeline they could feasibly pay back in a couple years isn’t far fetched.
Keep in mind these valuations are strictly for the facility itself and nothing more. There’s $220m of NOLs here, an active customer base of over 80 and 270 patents as well.
The comparables are few and far between because not many facilities of this kind (and scale) exist but one example was a plant built in 1950 that was sold after being mothballed a few years. Infrastructure needed upgraded to the tune of 30m, And with that in mind sold for a total value of 98m. This was for JUST the facility.
100m is worst case scenario here, which leaves .23 for us and Dick gets to walk away with a small loss.
Everyone I know has been averaging down to put themselves in a better position for the inevitable buyout and come out the other side even greener.
Be foolish not to knowing what we know here.
To the tune of at least 100m. Comparables are listed in the first PWC document. Guaranteed we get at least .20 out of this.
Looks like someone just got called out LOL.
People trying to paint a negative picture want your shares cheaper.
I’ve got dd all over twitter regarding this. Shareholders will still come out on top with .20+.
Someone hasn’t done enough DD. This market is increasing 35% YOY. The size of the plant didn’t hurt them, it was the cheap oil prices and higher corn prices at the time that did it. Another 6-12 months and this company would of been fine and on the road to recovery.
Low oil prices were actually most of the reason this fell on hard times. Profitability and order volume would of increased exponentially had oil prices never fallen under $50/bbl.
New tech takes a few years to get established, which was exactly the case here, another 6-12 months and I think this company would of pulled through unscathed sadly.