- Exclusive agreement with Sumitomo Corporation to evaluate MustGrow's technology to determine commercial potential.
- Sumitomo Corporation has option to acquire exclusive rights to MustGrow's technology for preplant soil fumigation, bioherbicide, postharvest and food preservation for potatoes, and bananas in North, Central, and South America.
- Sumitomo Corporation to fund and drive all field development, including toxicology, safety, efficacy, and regulatory work necessary for commercialization.
- MustGrow will complete its existing on-going field trials with other corporate collaborators.
Saskatoon, Saskatchewan--(Newsfile Corp. - August 4, 2021) - MustGrow Biologics Corp. (CSE: MGRO) (OTCQX: MGROF) (FSE: 0C0) ("MustGrow") and Sumitomo Corporation (TYO: 8053) (OTC: SSUMY) have signed an Exclusive Evaluation and Option Agreement (the "Agreement") to evaluate MustGrow's technology for purposes of determining efficacy and commercial potential.
Sumitomo Corporation (www.sumitomocorp.com/en/jp) is a diversified corporation and one of the world's largest general trading companies. Sumitomo Corporation is listed on three Japanese stock exchanges (Tokyo, Nagoya and Fukuoka under the symbol "8053") and is a constituent of the TOPIX and Nikkei 225 stock indices. For the year ended March 31, 2021, Sumitomo Corporation had US$41.8 billion in annual revenue, US$5.4 billion of cash & cash equivalents and 957 consolidated subsidiaries & associated companies.
MustGrow's remarkably safe and effective organic biopesticide is plant-based - harnessing the mustard seed's natural defense mechanism to control diseases, pests and weeds.
Sumitomo Corporation Exclusive Grant
MustGrow has granted Sumitomo Corporation the right to MustGrow's intellectual property and the exclusive option to acquire exclusive rights to MustGrow's technology (the "Technology") for preplant soil fumigation, bioherbicide, postharvest and food preservation for potatoes, and bananas in North, Central, and South America (the "Field of Use"). In addition to the commercial development, Sumitomo Corporation will fund and assume the role and responsibilities for conducting all toxicology, safety, efficacy, and regulatory work necessary for commercializing the Technology. Financial terms are not being disclosed.
Additionally, Sumitomo Corporation has the non-exclusive ability to acquire rights to the Technology for Canadian canola and pulses, global turf and ornamentals, floriculture, and all postharvest and food preservation applications not covered within the Field of Use.
MustGrow Reservation of Rights
MustGrow has on-going field trials under corporate collaboration with numerous agriculture, chemical products, and consumer food companies, including those previously disclosed and several also undisclosed. MustGrow reserves the right to complete these existing field trials and pursue commercial distribution agreements excluding those areas and territories defined within the Field of Use.
MustGrow reserves all other rights including the rights to engage with third parties with respect to the Technology, excluding within the Field of Use.
Company Commentary
MustGrow: "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," MustGrow COO Colin Bletsky remarked.
Sumitomo Corporation: "We are delighted to partner with an innovative company like MustGrow. We have been putting more focus on biological solutions and the collaboration with MustGrow will accelerate our strategy. By combining MustGrow's innovative solutions and our distribution platform in the Americas, we are confident that we will be able to provide sustainable solutions to growers," Sumitomo Corporation AgriScience Dept. GM Kazuma Suzuki remarked.
About Sumitomo Corporation
Sumitomo Corporation's crop protection business got its start in crop protection export trading activities with Japanese manufacturers in the 1970s, and it has helped improve the productivity and efficiency of agriculture in numerous countries. Its current strategy is to become more deeply involved in the downstream sectors of value chains, and it is engaged in distribution in 37 countries mainly in Europe and the Americas. Sumitomo Corporation is also working to expand its business scope and earnings by, for instance, acquiring agricultural material retailers in Brazil, Romania and Ukraine.
About MustGrow
MustGrow is a publicly traded (CSE: MGRO) (OTCQX: MGROF) (FSE: 0C0) agriculture biotech company focused on providing natural science-based biological solutions for high value crops, including fruits & vegetables and other industries. MustGrow has designed and owns a U.S. EPA-approved natural solution that uses the mustard seed's natural defence mechanism to protect plants from pests and diseases. Over 110 independent tests have been completed, validating MustGrow's safe and effective signature products. The product, in granule format, is EPA-approved across all key U.S. states and by Health Canada's PMRA (Pest Management Regulatory Agency) as a biopesticide for high value crops such as in fruit & vegetables. MustGrow has now concentrated a mustard extract biopesticide in liquid format, TerraMG, and with regulatory approval, could be applied through standard drip or spray equipment, improving functionality and performance features. In addition, the Company's mustard-derived extract technologies could have other applications in several different industries from preplant soil treatment, to weed control, to post harvest disease control and food preservation.
The Company has approximately 42.8 million basic common shares issued and outstanding and 50.6 million shares fully diluted. For further details please visit www.mustgrow.ca.
ON BEHALF OF THE BOARD
"Corey Giasson"
Director & CEO
Phone: +1-306-668-2652
info@mustgrow.ca
Forward-Looking Statements
Certain statements included in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may affect the results, performance or achievements of MustGrow.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "occur" or "be achieved".
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of MustGrow to differ materially from those discussed in such forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, MustGrow.
These risks are described in more detail in MustGrow's Prospectus and other continuous disclosure documents filed by MustGrow with the applicable securities regulatory authorities and available at www.sedar.com. Readers are referred to such documents for more detailed information about MustGrow, which is subject to the qualifications, assumptions and notes set forth therein.
This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
© 2021 MustGrow Biologics Corp. All rights reserved.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/92028
