Vancouver, British Columbia - April 2, 2020 (Investorideas.com Newswire) Clean Seed Capital Group Ltd. ("Clean Seed" or the "Company") (TSX-V: CSX) is pleased to announce it has closed a strategic license and investment agreement with US based AMVAC Chemical Corporation ("AMVAC"), a subsidiary of American Vanguard Corporation (NYSE: AVD).
Founded in 1969, American Vanguard has five decades of sustainable, responsible growth. AMVAC delivers unique solutions for the broad array of challenges to enhance agricultural productivity and safeguard public health. AMVAC has earned a place among the world's top specialty chemical providers in the world, with businesses in USA, Mexico, Central and Latin America, Europe, Brazil, Australia and Canada.
AMVAC is also recognized as an industry leader in closed delivery systems, like its SmartBox® closed delivery application system, which serves to reduce risk of exposure to users and applicators. Building on that expertise, AMVAC has developed a more advanced system called SIMPAS™ (Smart Integrated Multiproduct Prescriptive Application System). AMVAC's patented SIMPAS system enables simultaneous variable precision rate application of multiple crop protection and nutritional inputs to maximize harvest yield, minimize grower costs, optimize soil health and benefit environmental sustainability. This precision application of crop input segment runs parallel with Clean Seed's patented development of its ground-breaking highly advanced SMART seeding and SMART planting technologies, creating a symbiotic opportunity for both parties.
As part of this relationship Clean Seed will license AMVAC certain intellectual property rights for a US$2,500,000 upfront fee and an ongoing royalty of certain delivery systems. Clean Seed will provide ongoing development support as the parties may mutually agree to for future growth and diversification opportunities.
AMVAC will also be investing an additional US$2,500,000 through the purchase of 6,250,000 common shares of the Company at a price of US$0.40 per share (the "Offering"), bringing the total up-front investment to US$5,000,000.
Graeme Lempriere, Chief Executive Officer and Chairman of Clean Seed states "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. 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 Planting technologies assures a mutually beneficial relationship that strengthens our collective efforts and protects our product offerings. It has been a pleasure working with this likeminded group. I am also delighted to welcome Dr. Ulrich (Bob) Trogele, PhD to our Board of Directors and look forward to collaborating with him and the AMVAC teams on multiple levels as we share in the drive for industry leadership and innovation."
Dr. Trogele, Chief Operating Officer and Executive Vice President of AMVAC states, "AMVAC is investing into this strategic technology relationship with Clean Seed, leveraging the superior at plant technology of both companies, as they are symbiotic in providing farmers globally with sustainable soil health and precision planting solutions. When combining the multiple functions of Clean Seed's newest leading edge planter/seeder offering with the multiple precision at plant soil input potential of AMVAC's SIMPAS system, a grower will have up to eight critical inputs deployable at planting - a precision technology set of capabilities that simply is not presently available to farmers. Further, both companies look forward to collaborating in ways that take advantage of each company's technology for mutually beneficial business development. The timing is excellent, as we continue to see the precision agriculture application business growing and evolving to meet the changing demands of consumers and society. It's an honor and pleasure to join the Clean Seed Board of Directors and work with such a talented professional management team to bring innovation into the Agribusiness space."
Dr. Ulrich (Bob) Trogele, PhD
He has enjoyed a 34-year leadership career in Agribusiness, working for "large caps" such as Hoechst, Aventis and Bayer, and "mid-caps" such as Schering and FMC. He has working experience and knowledge in Europe, Asia and the Americas at all levels of Agribusiness (chemical, nutrient, seed and precision agriculture). In addition, he has worked at the country, regional and corporate general management level. Further, Dr. Trogele has been an Adjunct Professor at the Berlin School of Economics & Law for over 20 years, educating MBA's as future leaders in global business and society.
Dr. Trogele is past Vice Chair & Treasurer of Crop Life of America, past executive board member & Treasurer of the Agricultural Retailer Association, past board member of RISE, and past member of a number of industry associations in Germany, Denmark, and Ireland. Currently, he is the Treasurer and Board Member of the Crop Life Foundation, is an active board member of the Agricultural Retailer Association and Farm Journal Foundation.
The Company did not incur any finder's fees in connection with the Offering. The Company intends to use the proceeds of the Offering for its contribution in introducing the SMART Seeder MAX-S™, its related development activities and general working capital.
Closing of the Offering is subject to approval of the TSX Venture Exchange (the "TSX-V"). All securities issued will be subject to a regulatory hold period of four months and a day in accordance with the rules and policies of the TSX-V and applicable Canadian securities laws, and such other further restrictions as may apply under foreign securities laws.
ON BEHALF OF THE BOARD
Chief Executive Officer
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The common shares of Clean Seed Capital Group Ltd. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain "forward-looking statements" as defined under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Specifically, there is no assurance the Offering will complete on the basis as outlined, or at all; or that the Company's use of proceeds will not vary from that outlined above. Clean Seed disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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