It appears that MustGrow Biologics (CSE: MGRO) is on the right path with its proprietary mustard-based formulations. The company this morning, after being halted from trading yesterday, announced that it has entered into an exclusive evaluation and option agreement with Sumitomo Corporation (TYO: 8053) (OTC: SSUMY).
The exclusive arrangement will see the evaluation of MustGrow’s tech for “purposes of determining efficacy and commercial potential.” One of the largest general trading firms in the world, Sumitomo is one of the largest firms on Japanese markets, and had revenue of US$41.8 billion in its last fiscal year.
MustGrow has reportedly granted the Japanese conglomerate with the right to its IP, as well as an exclusive option to acquire exclusive rights to MustGrow’s tech as it applies to bioherbicides, preplant soil fumigation, postharvest and food preservation of potatoes, for bananas in the Americas.
Along with these commercial rights, the company is to fund and assume responsibilities for conducting toxicology, safety, efficacy, and regulatory work as it relates to commercializing the tech. The conglomerate has also been granted the ability to acquire rights to the tech for canola and pulses in Canada, turf and ornamentals globally, floriculture, and for postharvest and food preservation applications not previously addressed on a non-exclusive basis.
Notably, MustGrow has reserves the rights to continue currently ongoing field trials and continue to pursue commercial distribution agreements that are not included above, with the firm reportedly conducting a number of field trials that are undisclosed as well.
“We are very excited to partner with a global organization like Sumitomo Corporation. With their knowledge of the entire global food market, from production, processing to shipping we see the tremendous opportunity to leverage synergies and expand our entire portfolio. The extensive global Sumitomo Corporation agriculture organization has the scope and ability to help deliver sustainable solutions for growers globally.”Colin Bletsky, COO
Financial terms of the arrangement were not disclosed.
MustGrow Biologics last traded at $1.77 on the CSE.
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