BioAmber Inc (BIOA-N)

Produces succinic acid, an intermediate product that can be used in things like plastic, artificial leather, etc. The asset is generally made in Asia and from petroleum products, but they make theirs from industrial sugars, which is generally cheaper than that made from petroleum. They just haven’t executed on anything, so it has been one of the worst investments he has had this year. He questions if they will stay in business.

A Painful Position. Their products are more of an intermediate product. He has really liked the story. It has not been great execution. The plant in Sarnia needs to run at a higher capacity. People need to see that they can sell the products they produce. It is a very much wait and see story. He is not adding more to it until they have proven that they can deliver. They have been talking about a joint venture in China and the Q2 results in August could be another catalyst.

They produce a chemical that is used in a variety of products. Have the world’s biggest succinic acid plant. It seems that anything that could go wrong did. They did 2 financings which were not well received by the market. There was also a profit warning on their Q4 numbers. They had a shipment that was paid for, but hadn’t been shipped, which they had been recognizing as a sale. The CEO and CFO are no longer there. Still thinks this is a very good story. They need to demonstrate 2 things. 1.) They have to show that they can actually operate the plant at a reasonable level. 2.) They need to prove that someone wants to buy their product. He has stuck with his position because he thinks it is a very strong story.

Produces succinic acid, a base for an intermediate chemical or commodity that is used in a variety of things like plastic, polyurethane, and various other things. Generally made from petrochemical products, but their product is made from industrial sugars, which has a lot of advantages such as that it can be produced cheaper. It had 2 equity issues within 2 weeks which the market did not appreciate. The company has taken their knocks and are now cashed up essentially, so there shouldn’t be any more issues going forward.

Produces succinic acid, a standard building block that is used in things like plastic and polymers, for a variety of industries such as auto parts, plastic plants, and even pharmaceuticals. Has the world’s largest succinic acid plant in Sarnia Ontario. Instead of the traditional route, making the product from petrochemicals, they make it from industrial sugars. They can use any of the cheapest sugars, and currently use fructose made from corn. They can do it cheaper than it can be done from a petrochemical. About to launch a 2^nd plant which will be in either Louisiana or Sarnia. Going to ramp up production mid-2017, producing $25 million in EBITDA. A name that nobody knows about in Canada. It is going to have a TSX listing. Last week it got a big boost when one of the top 3 Canadian pension funds and one of the top 10 global pension funds made investments in the stock. (Analysts’ price target is $8.73.)