Clean Seed Capital Group Closes US$5M Strategic Agreement with U.S.-Based AMVAC
Clean Seed Capital Group Ltd. has announced it has closed a strategic license and investment agreement with U.S.-based AMVAC Chemical Corporation (AMVAC), a subsidiary of American Vanguard Corporation. 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 the U.S., 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 Seeder and SMART Planter 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, bringing the total up-front investment to US$5,000,000.
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