Business
MustGrow Provides Additional Information and Clarification on Commercial License Agreement with Bayer
Saskatoon, Saskatchewan--(Newsfile Corp. - December 13, 2023) - MustGrow Biologics Corp. (TSXV: M...
About this update from Mustgrow Biologics Corp.
[{"type":"text","content":"MustGrow Provides Additional Information and Clarification on Commercial License Agreement with BayerSaskatoon, Saskatchewan--(Newsfile Corp. - December 13, 2023) - MustGrow Biologics Corp. (TSXV: MGRO) (OTCQB: MGROF) (FSE: 0C0) (\"MustGrow\") wishes to provide additional information about the collaboration agreement (the \"Agreement\") with Bayer AG (\"Bayer\") which was announced December 11, 2023. The Agreement is a license and collaboration agreement enabling Bayer to further evaluate certain soil applications of MustGrow's mustard-based biocontrol technologies and to develop, formulate and commercialize licensed products containing such technologies for soil-applied, in-field uses for food and feed production in certain countries in Europe, the Middle East and Africa. The Agreement is dated effective December 11, 2023, and unless terminated earlier as provided in the Agreement, the term of the agreement shall continue until the expiration of all intellectual property licensed to Bayer under the agreement.Under the terms of the Agreement, MustGrow will receive an initial upfront payment as well as additional payments linked to the achievement of certain business milestones. These milestones include achievement of certain technical milestones such as testing in field trials and safety studies, submission of the first regulatory dossier to the appropriate authorities, and receipt of regulatory approval for a licensed product. Upon the commencement of commercial sales, MustGrow will also be entitled to fees from royalties and manufacturing sales. Pursuant to the Agreement, Bayer will be responsible for the regulatory and market development work (the \"Development Work\") in the respective field of use necessary to commercialize MustGrow's mustard-based biocontrol technologies, including the development of the formulated product, conducting relevant regulatory data studies for regulatory submissions, filing regulatory submissions, registration with relevant regulatory authorities, and support, marketing, and commercial sales activities. Based on the industry experience of its management team, MustGrow anticipates that the value of the upfront, milestone payments and Development Work could approximate USD $35 to $40 million over the next 5 to 7 years. The value and the timeline associated with completing the Development Work is n...