It appears that revenues might be coming in the near term to MustGrow Biologics (CSE: MGRO). The company announced this morning that it has seen approval from Canada’s Pest Management Regulatory Agency for one of its bio-fungicide products.
More specifically, the approval has been granted for CannaPM, which is a powdery mildew bio-fungicide product that is intended for use on cannabis and hemp. The company has exclusively licensed the product from a multinational biological and microbial company through a definitive agreement that was entered into back in September 2019.
The product is geared toward the suppression of powdery mildew, a widespread fungal disease that spreads easily following initial infection. While a number of products on the market currently combat the disease, such as myclobutanil, Health Canada does not permit the use of these chemical products for cannabis and hemp products.
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The active ingredient in the product, Streptomyces, has also been found to be effective against other harmful diseases as well such as botrytis, downy mildew, fusarium, verticillium and many others. The product has been approved as a foliar spray, presenting an immediate revenue opportunity for the firm. While not mustard derived, the company is clear that its focus remains on developing its flagship mustard-derived biopesticide and bioherbicide technologies.
The product is currently licensed for exclusive sales in Canada while also having the exclusive option to expand internationally as well.
MustGrow Biologics last traded at $2.08 on the CSE.
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