BioAmber and Vinmar also broadened the scope of their
previously announced 100,000-ton per year 1,4 butanediol (BDO) plant, which the
parties currently plan to start up in late 2017. Under that agreement,
following the financing, construction and commissioning of the BDO plant,
Vinmar has committed to purchase and BioAmber has committed to sell 100% of the
BDO produced for 15 years. As part of the new succinic acid master off-take
agreement, this second plant will be expanded to an annual capacity of 100,000
tons of bio-BDO and 70,000 tons of bio-succinic acid. Vinmar plans to make a
10% or greater equity investment in the expanded plant and has committed to
off-take and BioAmber has committed to sell a minimum of 50,000 tons per year
of bio-succinic acid for 15 years following the plant's start-up date. Vinmar
also has the option to secure additional bio-succinic acid tonnage under the
take-or-pay contract if BioAmber has not committed the remaining volume at the
time the plant's financing is secured.
