MustGrow Biologics and Sumitomo Corporation Announce Extension of Exclusive Agreement and Program Advancement
- Sumitomo Corporation has extended the option for exclusive testing with MustGrow’s technology for preplant soil fumigation, bioherbicide, postharvest and food preservation for potatoes, and bananas in North, Central, and South America.
- Sumitomo Corporation continues to demonstrate positive levels of efficacy utilizing MustGrow’s technology in comparison to synthetic chemical standards.
- Sumitomo Corporation to continue driving all field development, including regulatory and market assessment work necessary for commercialization.
TOKYO, JAPAN & SASKATOON, SK, CANADA – August 17, 2022 – Sumitomo Corporation (TYO: 8053) (OTC: SSUMY) and MustGrow Biologics Corp. (CSE: MGRO) (OTC: MGROF) (FRA: 0C0) (“MustGrow”) have signed an extension to their Exclusive Evaluation and Option Agreement (the “Extension Agreement”) to continue developing MustGrow’s mustard-based technology across the Americas.
Pursuant to the Extension Agreement, MustGrow has granted Sumitomo Corporation the exclusive right to continue developing MustGrow’s mustard-based technologies for preplant soil fumigation, bioherbicide, and postharvest and food preservation for potatoes and bananas in North, Central, and South America for an additional option period (the “Extension Period”). Over the span of the initial option period, Sumitomo Corporation’s evaluation efforts demonstrated positive levels of efficacy utilizing MustGrow’s technology in comparison to certain synthetic chemical standards. These positive tests, conducted across the Americas, resulted in the parties’ desire to extend the term of the Exclusive Evaluation and Option Agreement. During the Extension Period, Sumitomo Corporation plans to continue to drive all field development, regulatory and market assessment work necessary for commercialization.
The global crop protection chemicals market size was valued at USD 63.7 billion in 2020, and is projected to reach a value of USD 74.1 billion by 2025.(1) The growth of this market is attributed to the increasing need for food security of the growing global population. A large growth market is biopesticides, which are pesticides produced naturally, with minimum usage of chemicals. Due to rising environmental concerns and awareness of the pollution potential and health hazards of many synthetic conventional pesticides, the demand for biopesticides has been rising steadily in all parts of the world.
SUMITOMO CORPORATION COMMENT
“We are convinced that BioSolutions combined with AgTech are the future of agriculture and fundamental pillars where we are focusing our investment in the development of new solutions. After evaluating and verifying the effectiveness of the MustGrow technology in different crops with different application techniques, we are very glad to take a step forward in the collaboration with MustGrow.”
“We expect to strengthen this collaboration to accelerate the development to make this safe and effective tool available to farmers as soon as possible for a more sustainable agriculture,” said Marcos Mares, Head of Global Business Development in Sumitomo Corporation AgriScience Department.
“We are very excited to have Sumitomo Corporation commit to the next stage of our agreement. Considering that close to 45% of the global food is produced in North, Central and South America, it is critical to continue to innovate and develop technologies like ours,” said Corey Giasson, MustGrow’s President & CEO. “Having an organization like Sumitomo Corporation demonstrate the benefits in field and commit to move forward with our technologies is a great step to providing a sustainable solution for farmers globally.”
Source 1 – https://www.marketsandmarkets.com/Market-Reports/crop-protection-380.html
About Sumitomo Corporation
Sumitomo Corporation (“SC”) is a leading Fortune 500 global trading and business investment company with 131 locations (Japan: 20, Overseas: 111) in 66 countries and regions. The entire SC group consists of more than 900 companies. SC conducts commodity transactions in all industries utilizing worldwide networks, provides customers with financing, serves as an organizer and a coordinator for various projects, and invests in companies to promote greater growth potential. SC’s core business areas include six business units: Metal Products; Transportation & Construction Systems; Infrastructure; Media & Digital; Living Related & Real Estate; and Mineral Resources, Energy, Chemical & Electronics, and one initiative: Energy Innovation.
SC began exporting business of crop protection products in the 1970s, and has expanded its business realm to importing and wholesaling in 37 countries with 40 companies. Leveraging these broad networks and its long experience in the industry, SC has further expanded its activities to make a multifaceted contribution to global agriculture, such as the direct sales of agricultural inputs to farmers and the utilization of cutting-edge agricultural technologies.
For more information, please visit: https://www.sumitomocorp.com/en/jp.
MustGrow is an agriculture biotech company developing organic biopesticides and bioherbicides by harnessing the natural defense mechanism of the mustard plant to protect the global food supply from diseases, insect pests, and weeds. MustGrow and its leading global partners — Janssen (pharmaceutical division of Johnson & Johnson), Bayer, Sumitomo Corporation, and Univar Solutions’ NexusBioAg — are developing mustard-based organic solutions to potentially replace harmful synthetic chemicals. Over 100 independent tests have been completed, validating MustGrow’s safe and effective approach to crop and food protection. Pending regulatory approval, MustGrow’s patented liquid products could be applied through injection, standard drip or spray equipment, improving functionality and performance features. Now a platform technology, MustGrow and its global partners are pursuing applications in several different industries from preplant soil treatment and weed control, to postharvest disease control and food preservation. MustGrow has approximately 49.2 million basic common shares issued and outstanding and 55.1 million shares fully diluted. For further details, please visit www.mustgrow.ca.
MustGrow Forward-Looking Statements
Certain statements included in this news 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”. Examples of forward-looking statements in this news release include, among others, statements MustGrow makes regarding: (i) potential product approvals; (ii) anticipated actions by partners to drive field development work including dose rates, application frequency, application methods, and the regulatory work necessary for commercialization; (iii) expected product efficacy of MustGrow’s mustard-based technologies; and (iv) expected outcomes from collaborations with commercial partners.
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. Important factors that could cause MustGrow’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) the preferences and choices of agricultural regulators with respect to product approval timelines; (ii) the ability of MustGrow’s partners to meet obligations under their respective agreements; and (iii) other risks described in more detail in MustGrow’s Annual Information Form for the year ended December 31, 2021 and other continuous disclosure documents filed by MustGrow with the applicable securities regulatory authorities which are 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.
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