Wednesday, January 23, 2019 7:48:30 PM
If we go back to the very First Monitors Report you will see the Valuation of the Sarnia Succinic Acid plant by Nexant which was done in Febuary 2018. This Report was complete at the request of Bioambers Lenders and Potential Partners.
In the first section of the Valuation Report it mentions that along with its Sarnia Plant, the company has the technology to transform succinic acid into bio-butanediol. The Market for this is estimated to be CAD$12 Billion. The Vinmar Offtake agreement guarantees Vinmar would purchase all of the bio-butanediol produced at the second Plant in Sarnia for 15 years.
Nexant appraised the 30,000 MT Sarnia Plant to be worth CAD$34.5 Million as of January 2018 in a "Orderly Liquidation" or CAD$29.3 Million in a "Distressed Liquidation". That is for the Plant alone.
According the PWC the company's Monitor, all the companies assets including patents, trade secrets and intangibles were sold for a upfront purchase consideration of roughly CAD$5.75 Million in the Visolis Asset Transaction. This amount would represent only a 1/5th of the value that the company could get for the plant alone in a "distressed liquidation" which hasnt taken place.
The overall replacement cost to build a 30,000 MT succinic acid plant in Canada is CAD$175-185 Million as stated in the Report.
The Bioamber Sarnia Plant is in very good condition and better overall conditions than many of the plants Nexant has valued in the past.
Nexant estimates the value of the Sarnia plant as a operating facility to be within the range of CAD$70-90 million. They mention a list of Key Potential buyers and note that the Bioamber team has already been approached by a few companies including 2 noted in the list.
Nexant mentions that the Bioamber team have been approached by a few companies seeking the asset.
Nexant makes a comparison of the Sarnia Plant to a transaction of a plant from Amyris to DSM in November 2017. In May 2017 DSM made an initial equity investment in Amyris of US$25 million, translating into a shareholding of ~12%. Subject to the satisfaction of certain conditions, DSM may invest an additional US$25 million in Amyris.
Both Amyris and DSM could of been the Companies that Approached Bioamber in November 2017 stating interest in the Sarnia plant.
In the 1St Monitors Report it also shows a presentation by PWC where they show potential Buyers of Bioamber. DSM, LCY, Visolis or Roquette Frères do not show up on this list. They mention Reverdia (which is a JV between DSM and Roquette Frères) and its potential if it acquired Bioamber.
PTT Public(a Bioamber customer) and Greenfield Global(ex Bioamber CEO JF Huc is VP of GG) were the 2 Qualified Bidders that were leaked in a court document on PWC's website and then immediately fixed. Both companies pulled theirs Bids during the DD period of the initial SISP after this leak.
If we goto the 4TH Monitors Report which is dated July 30TH and look in the Section listing the Potential Buyers for the second SISP in liquidation scenario we will see DSM, LCY, Roquette Frères, PTT Plubic and Greenfield Global.
Reverdia is not mentioned anymore as a potential Buyer.
The contact for DSM on this list is Michael Wahl and Luc Morin.
Michael Wahl is the VP of Mergers & Acquisitions for DSM and has been for 9 years. Michaels specialty is actually Mergers and Acquisitions.
Luc Morin is a Partner at the Montreal office of law firm Norton Rose Fulbright LLP. He specializes in Financial restructuring.
The VP of Reverdia Atul Thakrar, who is also DSM's President of Bio-based Products and Services is also mentioned in DSM's contact.
LCY is on the list and has Bowei Lee as the contact. Bowei Lee is mentioned as the Chairman of LCY Biosciences after the Violis transaction according the Quebec corporation documents.
Bowei Lee is the previous Chairman of LCY Chemicals and is heading the LCY and KKR Joint venture taking LCY Private.
The service list available on PWC's website at this point(July 2018) had Counsel representing DSM Bio-based Products and Services on it, which we thought was on behalf of Reverdia. They have also used the same lawyer here in the Service list as in the Potential Buyers list who is Luc Morin of Norton Rose Fulbright LLP.
The second SISP in "Liquidation scenario" has as far as been updated by Bioamber on a October 25th 2018 Press release resulted in a asset sale referred to as the Visolis Asset Transaction.
The Visolis transaction was a sale of assets that closed on Oct 22ND 2018 to a company created by LCY and Visolis as a joint venture to purchase the assets. This company was referred in Monitors reports and court Documents is 9384-3076 Quebec Inc. they have since changed the name to LCY Biosciences. The upfront purchase price was USD$4.3 Million.
The most recent Service list on PWC's website from December 18 2018 has 9384-3076 Quebec Inc on the list now, and they have "replaced" DSM on the list and are being represented by Luc Morin and Norten Rose Fulbright instead.
We dont know the details of the JV, LCY Biosciences that has been created to purchase Bioambers Assets.
We do know that Visolis shares a past with DSM. Current Visolis President Deepak Dugar worked for DSM in 2012.
The Current VP of Business Development at Visolis BV is Erik Rutten who previously worked for DSM for 24 years in various positions including Senior Investment Manager and VP of R&D USA operations for DSM.
Visolis BV. was created on Febuary 16 2018.
On October 10TH 2018 Visolis BV appointed Hendrikus Johannes Jozef Rutten as a Director. Hendrikus is an inventor who has patents linked to DSM in the late 80's-early 90's.
Visolis BV is located in a Plant sharing the same land as DSM in the Netherlands.
Visolis might have access to DSM's new low ph yeast at the Facility in the Netherlands. Visolis and LCY could of compared Cargill's yeast strain which Bioamber currently uses with DSM"S strain, during the DD period of the initial SISP or following a agreement.
Visolis has a hands reach relationship with DSM. Cargill's royalties for exclusive use of their yeast will skyrocket in the coming years if they want to move forward with Plant 2 or 3.
DSM can offer a better deal to access to a more advantageous yeast and on better terms than Cargill's
The next transaction to happen will be the Recapitalization or Share Transaction where LCY and potential partners buy The Company, comprising of Bioamber Inc, Bioamber Sarnia and Bioamber Canada.
$4.3 Million for everything is a joke...
Competitors saw potential for Bioamber and its assets in 2017 prior to the Nexant Assesment and the CCAA and Bankruptcy proceedings.
Bioamber Sarnia still owns the Land and Bioamber Inc still owns the patents as of January 13TH 2019.
According the Court documents and monitors reports the Company is being sold is the best interest of all stakeholders that includes shareholders, employees, previous company management and directors(who were compensated in Shares) and creditors!
Links, DD and screenshots of documents relating to Bioamber are found in my posts
SHAREHOLDERS ARE SAFE
In the first section of the Valuation Report it mentions that along with its Sarnia Plant, the company has the technology to transform succinic acid into bio-butanediol. The Market for this is estimated to be CAD$12 Billion. The Vinmar Offtake agreement guarantees Vinmar would purchase all of the bio-butanediol produced at the second Plant in Sarnia for 15 years.
Nexant appraised the 30,000 MT Sarnia Plant to be worth CAD$34.5 Million as of January 2018 in a "Orderly Liquidation" or CAD$29.3 Million in a "Distressed Liquidation". That is for the Plant alone.
According the PWC the company's Monitor, all the companies assets including patents, trade secrets and intangibles were sold for a upfront purchase consideration of roughly CAD$5.75 Million in the Visolis Asset Transaction. This amount would represent only a 1/5th of the value that the company could get for the plant alone in a "distressed liquidation" which hasnt taken place.
The overall replacement cost to build a 30,000 MT succinic acid plant in Canada is CAD$175-185 Million as stated in the Report.
The Bioamber Sarnia Plant is in very good condition and better overall conditions than many of the plants Nexant has valued in the past.
Nexant estimates the value of the Sarnia plant as a operating facility to be within the range of CAD$70-90 million. They mention a list of Key Potential buyers and note that the Bioamber team has already been approached by a few companies including 2 noted in the list.
Nexant mentions that the Bioamber team have been approached by a few companies seeking the asset.
Nexant makes a comparison of the Sarnia Plant to a transaction of a plant from Amyris to DSM in November 2017. In May 2017 DSM made an initial equity investment in Amyris of US$25 million, translating into a shareholding of ~12%. Subject to the satisfaction of certain conditions, DSM may invest an additional US$25 million in Amyris.
Both Amyris and DSM could of been the Companies that Approached Bioamber in November 2017 stating interest in the Sarnia plant.
In the 1St Monitors Report it also shows a presentation by PWC where they show potential Buyers of Bioamber. DSM, LCY, Visolis or Roquette Frères do not show up on this list. They mention Reverdia (which is a JV between DSM and Roquette Frères) and its potential if it acquired Bioamber.
PTT Public(a Bioamber customer) and Greenfield Global(ex Bioamber CEO JF Huc is VP of GG) were the 2 Qualified Bidders that were leaked in a court document on PWC's website and then immediately fixed. Both companies pulled theirs Bids during the DD period of the initial SISP after this leak.
If we goto the 4TH Monitors Report which is dated July 30TH and look in the Section listing the Potential Buyers for the second SISP in liquidation scenario we will see DSM, LCY, Roquette Frères, PTT Plubic and Greenfield Global.
Reverdia is not mentioned anymore as a potential Buyer.
The contact for DSM on this list is Michael Wahl and Luc Morin.
Michael Wahl is the VP of Mergers & Acquisitions for DSM and has been for 9 years. Michaels specialty is actually Mergers and Acquisitions.
Luc Morin is a Partner at the Montreal office of law firm Norton Rose Fulbright LLP. He specializes in Financial restructuring.
The VP of Reverdia Atul Thakrar, who is also DSM's President of Bio-based Products and Services is also mentioned in DSM's contact.
LCY is on the list and has Bowei Lee as the contact. Bowei Lee is mentioned as the Chairman of LCY Biosciences after the Violis transaction according the Quebec corporation documents.
Bowei Lee is the previous Chairman of LCY Chemicals and is heading the LCY and KKR Joint venture taking LCY Private.
The service list available on PWC's website at this point(July 2018) had Counsel representing DSM Bio-based Products and Services on it, which we thought was on behalf of Reverdia. They have also used the same lawyer here in the Service list as in the Potential Buyers list who is Luc Morin of Norton Rose Fulbright LLP.
The second SISP in "Liquidation scenario" has as far as been updated by Bioamber on a October 25th 2018 Press release resulted in a asset sale referred to as the Visolis Asset Transaction.
The Visolis transaction was a sale of assets that closed on Oct 22ND 2018 to a company created by LCY and Visolis as a joint venture to purchase the assets. This company was referred in Monitors reports and court Documents is 9384-3076 Quebec Inc. they have since changed the name to LCY Biosciences. The upfront purchase price was USD$4.3 Million.
The most recent Service list on PWC's website from December 18 2018 has 9384-3076 Quebec Inc on the list now, and they have "replaced" DSM on the list and are being represented by Luc Morin and Norten Rose Fulbright instead.
We dont know the details of the JV, LCY Biosciences that has been created to purchase Bioambers Assets.
We do know that Visolis shares a past with DSM. Current Visolis President Deepak Dugar worked for DSM in 2012.
The Current VP of Business Development at Visolis BV is Erik Rutten who previously worked for DSM for 24 years in various positions including Senior Investment Manager and VP of R&D USA operations for DSM.
Visolis BV. was created on Febuary 16 2018.
On October 10TH 2018 Visolis BV appointed Hendrikus Johannes Jozef Rutten as a Director. Hendrikus is an inventor who has patents linked to DSM in the late 80's-early 90's.
Visolis BV is located in a Plant sharing the same land as DSM in the Netherlands.
Visolis might have access to DSM's new low ph yeast at the Facility in the Netherlands. Visolis and LCY could of compared Cargill's yeast strain which Bioamber currently uses with DSM"S strain, during the DD period of the initial SISP or following a agreement.
Visolis has a hands reach relationship with DSM. Cargill's royalties for exclusive use of their yeast will skyrocket in the coming years if they want to move forward with Plant 2 or 3.
DSM can offer a better deal to access to a more advantageous yeast and on better terms than Cargill's
The next transaction to happen will be the Recapitalization or Share Transaction where LCY and potential partners buy The Company, comprising of Bioamber Inc, Bioamber Sarnia and Bioamber Canada.
$4.3 Million for everything is a joke...
Competitors saw potential for Bioamber and its assets in 2017 prior to the Nexant Assesment and the CCAA and Bankruptcy proceedings.
Bioamber Sarnia still owns the Land and Bioamber Inc still owns the patents as of January 13TH 2019.
According the Court documents and monitors reports the Company is being sold is the best interest of all stakeholders that includes shareholders, employees, previous company management and directors(who were compensated in Shares) and creditors!
Links, DD and screenshots of documents relating to Bioamber are found in my posts
SHAREHOLDERS ARE SAFE
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
