Key Takeaways:
- MustGrow Biologics Corp. (TSXV: MGRO) has acquired NexusBioAg through an Asset Purchase Agreement (APA) with Univar Solutions Canada Ltd.
- The acquisition positions MustGrow as a fully integrated biological and regenerative agriculture provider.
- Total consideration includes a deferred cash payment of $1.66 million and earn-out payments based on future product sales.
- NexusBioAg’s sales and marketing division will integrate with MustGrow, expanding operations in Canada and potentially the U.S.
- The acquisition aims to enhance market access and reduce distribution costs for MustGrow’s products.
What Is the Significance of MustGrow’s Acquisition of NexusBioAg?
MustGrow Biologics Corp. has announced the acquisition of NexusBioAg from Univar Solutions Canada Ltd. through an Asset Purchase Agreement (APA) executed and closed on December 31, 2024. This acquisition strengthens MustGrow’s role as a comprehensive provider of biological and regenerative agriculture solutions.
The APA outlines a deferred cash payment of $1,662,000, subject to adjustments, along with earn-out payments linked to the gross margin on specific products sold by MustGrow in 2025 and 2026. No finder fees were incurred, and the deal was conducted at arm’s length. The acquisition has been conditionally approved by the TSX Venture Exchange, pending standard post-closing requirements.
How Will NexusBioAg Contribute to MustGrow’s Expansion?
By acquiring NexusBioAg, MustGrow gains a fully operational sales, marketing, and distribution division in Canada, with potential for U.S. expansion. Under MustGrow’s ownership, the division will manage NexusBioAg’s existing product lines, MustGrow’s proprietary products, and potentially third-party biological solutions.
NexusBioAg’s experienced sales and marketing team will drive growth, leveraging established relationships with growers, channel partners, and industry influencers. This acquisition is expected to produce sales synergies, enhancing market reach and minimizing distribution expenses.
What Are the Expected Benefits of the Acquisition?
MustGrow anticipates multiple benefits from the NexusBioAg acquisition:
- Market Expansion: Access to broader markets in Canada and the U.S.
- Sales Synergies: Increased sales opportunities and reduced distribution costs.
- Innovation: Greater capacity for commercializing new biological and regenerative products.
- Industry Expertise: Integration of a skilled sales and marketing team with deep industry networks.
Corey Giasson, President & CEO of MustGrow, highlighted the acquisition’s value, stating, “This synergistic acquisition solidifies MustGrow’s position as a fully integrated biological and regenerative agriculture company. We are committed to growing the NexusBioAg division and we welcome the new team to MustGrow.”
What Products Will NexusBioAg Market Under MustGrow?
The NexusBioAg division will continue marketing its existing product lines alongside MustGrow’s proprietary products and technologies. Additionally, MustGrow may introduce third-party biological and regenerative products through this platform. The acquisition enables MustGrow to streamline commercialization and expand its product portfolio.
MustGrow Biologics Latest News
Proposed NexusBioAg Acquisition Overview (2024/11/28)
MustGrow Biologics Corp. has signed a non-binding term sheet with Univar Solutions Canada Ltd. to acquire assets representing NexusBioAg. The acquisition is subject to conditions including satisfactory due diligence, negotiation, and approval by the TSX Venture Exchange and MustGrow’s Board of Directors. The acquisition will establish MustGrow as a fully integrated provider of biological and regenerative agriculture solutions in Canada, leveraging NexusBioAg’s sales and marketing expertise, existing product portfolio, and proven commercialization model. The transaction is expected to close by December 31, 2024.
Secures Funding from Agriculture and Agri-Food Canada (2024/09/18)
MustGrow Biologics Corp. has secured funding from Agriculture and Agri-Food Canada (AAFC) to investigate mustard-derived ingredients’ potential in human and animal health applications. The project, conducted under the AgriScience Program of the Sustainable Canadian Agricultural Partnership, will explore mustard seed extracts in functional foods, nutraceuticals, and natural food preservatives. The research will focus on analyzing mustard seed compounds for potential antibiotic and gut health benefits, assessing the effectiveness of mustard extracts, testing bioactive components for antifungal and antibacterial properties, and evaluating mustard-derived bioactives for antioxidant and anti-inflammatory properties.
Receives Florida Approval for TerraSante™ Organic Biofertility Product (2024/09/12)
MustGrow Biologics Corp. has received registration approval from the Florida Department of Agriculture and Consumer Services for its mustard plant-based TerraSante™, an organic biofertility product. This is part of MustGrow’s commercialization strategy in the U.S., aligning with existing Organic OMRI Listed® certifications in Arizona, Idaho, Oregon, and Washington State. TerraSante™ supports soil health and the ecological environment by promoting beneficial microbial activity, improving nutrient availability and crop performance without artificial additives or preservatives.
Receives Arizona Registration for TerraSante™ Organic Biofertility Product (2024/08/23)
MustGrow Biologics Corp. has secured registration approval from the Arizona Department of Agriculture for its TerraSante™ biofertility product, which is already certified in Idaho, Oregon, and Washington. This strategic approval allows MustGrow to target Arizona’s significant agricultural sector, particularly vegetable and leafy green producers in Yuma County, a major winter farming region. TerraSante™ enhances soil health by feeding soil microbes with plant-based proteins and carbohydrates, supporting organic farming. The Arizona certification aligns with MustGrow’s goal of improving sustainable agricultural practices, and the company plans to expand TerraSante™ into other U.S. states.
Secures Idaho State Approval for TerraSante™ (2024/08/01)
MustGrow Biologics Corp. announced that its mustard plant-based biofertility product, TerraSante™, has been registered by the Idaho Department of Agriculture. This organic biofertilizer is designed to improve soil health and support sustainable agriculture. It aims to enhance nutrient availability, increase plant vigor and yields, and reduce plant stress without artificial additives. CEO Yoash Zohar expressed pride in the company’s achievements and the impressive improvement in their production capabilities.
Joins Forces to Combat TR4 in Bananas (2024/07/10)
MustGrow Biologics Corp. (TSXV: MGRO) (OTCQB: MGROF) (FSE: 0C0) has joined the Global Alliance Against TR4, a group focused on fighting the devastating Fusarium wilt TR4 disease, which poses a significant threat to the global banana industry. MustGrow aims to use its innovative technologies to address this critical issue alongside industry giants like Bayer, Chiquita, Del Monte, Dole, and Fyffes. In partnership with Bayer, MustGrow is developing organic, safe, and effective biofungicides and biopesticides to combat TR4, showing promising results in laboratory and field trials.
Secures California Registration for Organic Biofertility Product (2024/05/09)
MustGrow Biologics Corp. has received approval from the California Department of Food Agriculture for TerraSanteTM, an organic biofertility product derived from mustard plants. This approval is a significant step in the company’s U.S. expansion and allows TerraSanteTM to be sold in California, a key agricultural state. The product focuses on enhancing soil microbiome health to improve nutrient availability, increase plant vigor and yields, and reduce plant stress without the use of artificial additives or preservatives.
Secures Exclusive Distribution for TerraSante™ in Oregon & Washington State (2024/05/03)
MustGrow Biologics Corp. has partnered with G.S. Long Co., Inc. to distribute its TerraSanteTM product in Oregon and Washington. TerraSanteTM is an organic product certified by the USDA National Organic Program and OMRI Listed® that promotes soil microbiome health, nutrient and water use efficiencies, and sustainable farming practices. G.S. Long Company, a family-owned agricultural chemical and fertilizer retailer, brings extensive experience and a robust network of over 40 state-licensed Crop Advisors. This collaboration is poised to leverage G.S. Long’s deep relationships with generational growers and their expertise in both conventional and organic agriculture consulting across the two states. MustGrow is committed to expanding its market presence and enhancing its suite of biocontrol programs while maintaining its strategic partnerships with major global entities like Bayer and Sumitomo Corporation to foster the development and distribution of advanced agricultural technologies.
Achieves Key Certification for Organic Biofertility Product TerraSanteTM in Oregon (2024/02/07)
MustGrow Biologics Corp. has received The State of Oregon Agriculture Fertilizer Registration Certificate for its organic biofertility product, TerraSanteTM. With this certification, the company can commence sales in Oregon and capitalize on the upcoming 2024 planting season. TerraSanteTM is an organic biofertilizer that improves soil microbiome health, nutrient and water use efficiencies, and plant yields. It has secured organic compliance certification from the USDA National Organic Program (OMRI Listed®). MustGrow’s biocontrol programs are underpinned by partnerships with global leaders such as Bayer, Sumitomo Corporation, Janssen PMP, and NexusBioAg.
Summary of MustGrow Biologics News for 2023
Reveals Bayer Agreement Details (2023/12/14)
MustGrow Biologics partnered with Bayer AG to develop mustard-based biocontrol technologies for soil applications. The deal includes upfront and milestone payments estimated at $35-$40 million over 5-7 years. Bayer will oversee regulatory and market development, while MustGrow receives royalties and manufacturing fees. Bayer has a right-of-first-negotiation for banana applications.
MustGrow Biologics & Bayer Sign Biocontrol Tech Agreement (2023/12/12)
MustGrow and Bayer aim to bring sustainable biocontrol solutions to Europe, the Middle East, and Africa. The agreement supports mustard-based technologies, with payments up to $40 million over several years. Both companies are optimistic about advancing biological solutions.
Launches TerraSante™ in Washington State (2023/11/16)
TerraSante™, MustGrow’s mustard-based crop fertilizer, received regulatory approval in Washington State. Collaborating with BioAg Product Strategies, MustGrow plans commercial sales for the 2024 planting season, emphasizing organic soil health and efficiency.
MustGrow & NexusBioAg’s Field Trials (2023/11/08)
In partnership with NexusBioAg, MustGrow began field trials for TerraMG™, targeting pre-plant soil treatments for canola and pulse crop diseases. The trials align with sustainable crop protection goals under the 2024 BioAdvantage Trials Program.
Receives Organic Approval for TerraSante™ (2023/11/01)
TerraSante™ earned USDA National Organic Program compliance and OMRI listing, validating its organic and sustainable credentials. MustGrow plans to expand its soil health and biofertility innovations to global markets.
MustGrow and Janssen PMP Expand Agreement (2023/09/07)
MustGrow and Janssen PMP extended their collaboration on mustard-based postharvest technologies for potatoes and bananas. The agreement targets reducing postharvest losses and advancing sustainable food preservation.
Achieves Milestone in Sustainable Biocontrol Production (2023/06/14)
MustGrow achieved a production milestone for mustard-based biocontrol liquid, reaching over 5,000 liters/day. This production capacity could yield $25 million annually in grower revenue, underscoring MustGrow’s commitment to sustainable farming.
Partners with Bio Ag Product Strategies (2023/06/06)
MustGrow teamed up with BioAg Product Strategies to expand its soil amendment and biofertility technologies, focusing initially on select U.S. regions. The collaboration targets sustainable alternatives to synthetic fertilizers.
MustGrow Biologics & Janssen PMP Extend Partnership for Postharvest Food Preservation (2023/05/26)
MustGrow and Janssen PMP extended their partnership to innovate postharvest preservation solutions, aiming to cut vegetable crop losses by up to 60% with mustard-based technologies.
