MustGrow Provides 2024 Pipeline Update
24 September 2024, Canada: MustGrow Biologics Corp. (TSXV:MGRO) (OTC:MGROF) (FRA:0C0) (the “Company” or “MustGrow”) is pleased to provide its 2024 pipeline update. The Company is a leader in innovative biological nutrition and crop protection solutions from mustard and today announced significant developments in the commercialization of its flagship products, TerraSanteTM and TerraMGTM, as the Company advances its efforts to transform sustainable agriculture.
TerraSanteTM: Initial Sales and Market Opportunity
MustGrow is pleased to announce that TerraSanteTM is in the initial stages of commercialization, with product registration successfully obtained in key high value crop growing U.S. states, including California, Florida, Arizona, Idaho, Oregon, and Washington. The Company is receiving purchase orders and sales have commenced, marking a major milestone for the Company.
To assist in executing the direct sales and marketing strategy in the U.S., MustGrow engaged the services of two key industry veterans, Tim Lichatowich and Mike Atkins, who have close to six decades of combined experience in the fruit, vegetable and row crop markets.
“We are seeing strong initial interest in TerraSanteTM, particularly in California, where the market demand for a product like MustGrow’s is significant,” said Mike Atkins. Tim Lichatowich, who led multiple grower and industry meetings in California throughout 2024 also commented, “The potential for TerraSanteTM is even greater than we anticipated, with opportunity for multiple applications per year over large acreages.”
Key highlights of TerraSanteTM’s market progress include:
- Initial Sales: Sales have commenced in the U.S., following registrations in several key fruit & vegetable growing states.
- Potential Market Opportunity: To date, MustGrow’s representatives are in direct contact with production companies covering an estimated 355,000 acres. These acres support multiple crops per year, therefore, there is potential for multiple applications of TerraSanteTM Sales volume from multiple applications is beyond what was initially anticipated, and as such, the 355,000 acres could potentially translate into 850,000 to 1 million acres per year application potential. This is just on a small fraction of the estimated 5.6 million acres of high value crops in the US (fruit & vegetable; tree, nut & vine; root & tuber).
- Potential Future Growth: For 2024 and 2025, initial sales and successful customer testing results will drive sales growth. Commercial sales and data on product performance is expected during the upcoming winter and spring. From there, management anticipates a full-scale sales ramp-up in 2025 and 2026.
TerraSanteTM Production Update
Manufacture of TerraSanteTM started in 2023 with MustGrow’s first commercial production run. MustGrow is actively planning for larger-scale production to meet anticipated demand. The Company is exploring various production options, including existing and expanded contract manufacturing partnerships.
“This is a very exciting time for MustGrow with actual production and sales.” said Corey Giasson, MustGrow’s President & CEO. “A few years ago, I mentioned that MustGrow was going to start the commercialization process. Well we did, and what you are witnessing is the transformation of the Company from being strictly an R&D company to now one with product sales. Our goal with TerraSanteTM, and other future registered products such as TerraMGTM, is to not only produce enough product to meet demand but do so in a cost-effective manner so as to increase margins and return on investment. You can be rest assured, that MustGrow’s management focuses on this each and every day.”
TerraSanteTM for Soil and Ecological Health
MustGrow’s soil amendment and biofertility development programs focus on soil and soil microbiome health, nutrient and water use efficiencies, and plant yields. Soil is a farmer’s most valuable asset, and MustGrow’s mustard plant-based technologies are being developed with the intention to improve not only the health of the soil, but also the surrounding ecological environment.
As an organic biofertilizer in wettable powder form, TerraSanteTM contains nutritious plant proteins and carbohydrates that feed the soil and soil microbes, potentially improving beneficial microbial activity and ensuring long-term sustainable soil health. These targeted micro-communities have been shown to work to improve nutrient availability, which can potentially increase plant vigor and yields, while reducing plant stress. TerraSanteTM has the potential to improve crop nutrient uptake and, hence, overall crop performance. There are no artificial additives or preservatives used during its manufacturing.
TerraMGTM: Progress with Bayer
TerraMGTM’s commercialization is progressing under MustGrow’s commercial agreement with Bayer for Europe, the Middle East, and Africa. While registrations are still in process in the US and Canada, MustGrow is encouraged by the ongoing work and progress being made alongside Bayer in the EU.
“We are very pleased with how things are proceeding with Bayer and they have been a great partner,” said MustGrow’s CEO. “Field trials are continuing in multiple countries and regions, and Bayer’s technical, regulatory, production, sales and marketing teams are providing excellent support as we work to advance TerraMGTM under the commercial agreement.”
Key developments for TerraMGTM under the Bayer commercial agreement include:
- Signing of the Bayer Commercial Agreement: This agreement, signed in December 2023, includes licensing for Europe, the Middle East, and Africa, and included an upfront payment as well as milestone payments to MustGrow for development and registration work.
- Field Trials and Technical Success with Bayer: Field trials and technical evaluations continue to yield positive results for both nematode and disease treatment, with the next program review scheduled for the end of October at the Annual Biocontrol Industry Meeting (“ABIM”) meeting in Basel.
- Assessing Future Production for Bayer: MustGrow and Bayer are also focusing on sourcing raw materials and scaling production capabilities for future sales and growth.
TerraMGTM in U.S. and Canada
TerraMGTM registration work continues to progress in the U.S. with the Environmental Protection Agency (“EPA”) and in Canada with the Pest Management Regulatory Agency (“PMRA”). MustGrow continues to work closely with regulatory agencies and consultants and management remains committed to continuing these registrations.
Exclusive Non-Commercial Agreements
MustGrow is announcing expiration of the exclusive non-commercial agreements with NexusBioAg, Janssen PMP and Sumitomo Corporation. The Company collected substantial data and market analysis through these agreements and will now move forward on a non-exclusive basis with multiple parties to commercialize these opportunities.
Intellectual Property Portfolio
MustGrow continues to build its intellectual property portfolio, with 112 issued and pending patents, even as the Company pivots from R&D toward commercialization. This is up from 84 total patents issued and pending in March of 2023.
The intellectual property pipeline continues to grow through MustGrow’s own work as well as collaborations with university, government and other research groups. Expanded infield applications of existing formulations as well as new active ingredients are generating new product and patent opportunities.. Most recently, the Company and Agriculture and Agri-Food Canada announced funding to explore the possibilities of MustGrow’s mustard extracts in the human and animal health area.
Future Roadmap
Looking ahead, MustGrow’s 2024-2025 roadmap focuses on delivering the commercialization of TerraSanteTM and TerraMGTM, validating product efficacy through sales, and driving global expansion. The Company is committed to fostering its partnership with Bayer and securing new commercial partners in non-commercialized territories, including Mexico, South America, and Asia.
“We are evolving as a Company, and sales, margins and return on investment will become key drivers for our growth moving forward,” said Mr. Giasson. “While blue-sky opportunities remain important, our focus will shift towards delivering on our commercial potential.”
Management Presentation and Q&A
MustGrow is pleased to invite investors and other interested parties to attend an upcoming interview with Market Radius Research. The Company’s CEO Corey Giasson and COO Colin Bletsky will be presenting an update and taking any questions for the audience. The webinar will be a live, interactive online event where attendees are invited to ask the Company questions in real-time following the interview. An archived webcast will be made available for those who cannot join the event live on the day of the webinar.
- Event: Radius Research Pitch, Deep Dive, and Q&A with MustGrow Biologics (MGRO)
- Presentation date & time: Tuesday, September 24th @ 4 PM ET
- Registration link:
https://us02web.zoom.us/webinar/register/5817266800122/WN_O30xI1NtRAWT_FRvMy0hqA
Market Radius Research gives individual investors access to in-depth CEO interviews with deep-dive institutional level discussion and Q&A. Market Radius is hosted by Martin Gagel, former top-ranked technology analyst. By registering for this webinar, you agree to receive email communications from Market Radius Capital, Inc. and from the presenting company (with unsubscribe). Your email will not be further shared. Martin Gagel and Market Radius Capital, Inc. are not registered or licensed to provide investment advice and may own shares in mentioned companies and may be compensated for these services. Content is for information purposes only and is not advice or recommendations and may include incomplete or incorrect information. Investing entails a high degree of risk. This is a production of Market Radius Capital, Inc.
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