Replies to post #95082 on BioAmber Inc fka BIOAQ

[trader59]

This was a long time ago, when they were in business before the bankruptcy. Mitsui was the partner in the JV for the Sarnia plant, and that JV was terminated in 2017. This is a quote from the last 10K, page 18:

On August 1, 2017, our joint venture agreement with Mitsui was terminated and, as a result, Mitsui will no longer fund any portion of the operations at our Sarnia facility. As a result, we will need to find alternative sources of capital to carry out our activities at the Sarnia facility, which may only be available on less favorable terms. The failure to identify acceptable alternative financing could prevent us from meeting our goal of reaching full production capacity at the Sarnia facility towards the end of 2018 or at all. If we decide to seek out a new joint venture partner or partners to help finance our Sarnia facility, any new joint venture agreement we may enter into could present financial, managerial and operational challenges, including potential disputes with any new joint venture partner, additional liabilities or contingencies and other risks that would not otherwise be present if we developed the Sarnia facility alone. Any disruptions in ramping up our commercial operations at the Sarnia facility and meeting the expectations of our customers could have a material adverse effect on our results of operations.

In addition, in connection with the termination of the joint venture agreement, we agreed to indemnify Mitsui for any payments it makes pursuant to its guarantees under the commercial loan agreement with Comerica Bank, Export Development Canada and Farm Credit Canada and the other parties thereto, or the EDC Loan Agreement and the loan agreement with the Minister of Economic Development and Trade of Ontario, Canada (Sustainable Jobs Innovation Fund), or the SJIF Loan Agreement. Any payments we make pursuant to our indemnification obligations to Mitsui may divert a significant amount of money that we could otherwise use to expand our Sarnia facility and achieve our strategic objectives.