MustGrow Acquires NexusBioAg For $1.66 Million In Cash, Future Earn-Out Payments
MustGrow Biologics (TSXV: MGRO) has completed the previously announced acquisition of NexusBioAg from Univar Solutions Canada.
Classified as an asset purchase agreement, the arrangement saw MustGrow acquire “certain assets” that represent the company. While details on the transaction are slim, the company is said to have paid $1.66 million in the form of a deferred cash payment. Earn-out payments are also to be made based on an undisclosed percentage of gross margin on certain products sold by the company in 2025 and 2026.
The acquisition follows an exclusive marketing agreement initially entered into back in 2022, whereby NexusBioAg had the exclusive rights to market and distribute MustGrow’s TerraMG product within Canada.
The new division of MustGrow will now focus on marketing and selling existing NexusBioAg product lines, in addition to MustGrow’s own branded products and tech, as well as potential third party products. The transaction will enable MustGrow to leverage the established network NexusBioAg has with growers, channel partners, and industry influencers, making it a fully integrated provider of agriculture solutions with “significant” sales synergies expected.
“This synergistic acquisition solidifies MustGrow’s position as a fully integrated biological and regenerative agriculture company with an established sales, marketing and distribution division offering the existing NexusBioAg product lines and supporting the commercialization of MustGrow’s own innovative products and technologies,” commented MustGrow CEO Corey Giassion on the transaction.
MustGrow Biologics last traded at $1.15 on the TSX Venture.
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