AMVAC closes $5M strategic agreement with Clean Seed Capital Group

Date:04-03-2020

AMVAC, an American Vanguard company (NYSE: AVD), announced recently 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.