AMVAC®, an American Vanguard® company (NYSE: AVD), announced today that it has closed a strategic license and investment agreement with Clean Seed Capital Group Ltd. (TSX-V: CSX).
The relationship results in Clean Seed licensing to AMVAC certain intellectual property rights for an initial investment of US$2,500,000, plus an undisclosed royalty that will be payable to Clean Seed by AMVAC in conjunction with AMVAC’s future SIMPAS™ hardware sales. AMVAC will invest an additional US$2,500,000 through the purchase of shares of Clean Seed stock, bringing the total AMVAC investment to US$5,000,000.
“AMVAC is investing in this strategic technology relationship in order to leverage the superior prescriptive at-plant application technology of both companies. We believe our organizations are truly symbiotic,” said Chief Operating Officer Dr. Bob Trogele. “By combining Clean Seed’s leading-edge ability to prescriptively plant and apply high-dose rate crop inputs like N, P, and K, with AMVAC’s low-dose rate SIMPAS application technology, farmers will realize prescriptive application capabilities that simply are not presently available.”
AMVAC’s patented SIMPAS (Smart Integrated Multi-Product Prescription Application System) enables simultaneous, prescriptive application of multiple crop protection and nutritional inputs. By applying only what’s prescribed, precisely where it’s needed, return on investment from the applied products is optimized. This precision application technology runs parallel with Clean Seed’s patented SMART Seeder™ and SMART Planter™ technologies, creating a symbiotic opportunity for both parties.
“Our aligned objectives, to deliver sustainable, meaningful results for the agricultural sector through the precise application and control of inputs, are rooted in the stewardship of our soil structure,” said Chief Executive Officer and Chairman of Clean Seed Graeme Lempriere. “AMVAC’s leadership in the chemical business and Clean Seed’s cutting edge leadership in the multi product delivery systems and related SMART Seeder™ and SMART Planter™ technologies assures a mutually beneficial relationship that strengthens our collective efforts and protects our product offerings.”
“The timing is excellent, as we continue to see the precision agriculture application business grow and evolve to meet the changing demands of consumers and society,” added Dr. Trogele.
AMVAC® is a subsidiary of American Vanguard® Corporation. American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection management, turf and ornamentals management, and public safety and animal health applications. American Vanguard is included on the Russell 2000® & Russell 3000® Indexes and the Standard & Poors® Small Cap 600 Index.
The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that may cause results to differ from management’s current expectations. Such factors include weather conditions, changes in regulatory policy and other risks as detailed from time to time in the Company’s SEC reports and filings. All forward-looking statements, if any, in this release represent the Company’s judgment as of the date of this release.
©2020 AMVAC Chemical Corporation is a wholly owned subsidiary of American Vanguard Corporation. All rights reserved. American Vanguard, AMVAC, SIMPAS and respective logos are trademarks owned by AMVAC Chemical Corporation.
About Clean Seed Capital Group Ltd.
The common shares of Clean Seed Capital Group Ltd. are listed on the TSX Venture Exchange and trade under the symbol “CSX”.
We are a team of innovators and business management professionals with a proven track record of game changing innovation and production of patented agricultural technologies at a high level. We pride ourselves as progress facilitators that turn solutions for modern agricultural problem into commercially viable products to fulfill new demand.
Clean Seed’s SMART Seeder™ technologies are revolutionary seeding tools that utilize the unique synergy of sophisticated electronic metering and intuitive software control putting row-by-row variable rate technology at the forefront of agricultural innovation. Our innovations create a new class of highly accurate seeding equipment designed specifically for today’s farmer.
For further information please contact Clean Seed at 604-566-9895 and visit our website at http://www.cleanseedcapital.com.