Feeding nine billion people on the globe by 2050 will require increased crop yields.
They’re not making any more land; the world’s fish stocks are depleting and existing soil yields are stretched.
California-based Cbus Inc. plans to help meet the food gap with a gene editing process that develops new traits in crop seeds.
The RTDS machine does the job from a new 320,000 square foot facility in San Diego.
The company concentrates on five traits to increase yields and reduce costs. The traits include pod shattering, disease resistance, pest resistance and herbicide tolerance.
Founded in 2001, Cbus has spent over 20 years researching developing and losing money to advance to commercial status.
Crops under the Cbus aim are canola, rice, soybeans, wheat and corn. Potential, markets tackled involve 260 million acres in canola, rice and soybeans alone.
Revenues come from licensing royalties paid by seed companies using Cbus traits in seeds.
Several products are in early stages of commercialization. Customers include Nutrien, Bayer, Proctor and Gamble, GDM Seeds and NUSEED.
A product to reduce pod shattering canola was marketed this year after five years of field trials and two rice products have been made available commercially
Two years of field trials have advanced a product for canola resistant scleretonia fungus to near commercialization. The sclerotinia product will be a major asset.
In Canada, sclerotinia losses in canola production vary from five per cent to 12 per cent. Reducing that loss by half would add between $600 million and $850 millions a year to canola farmers’ incomes. This has been a milestone year for the company. July opening of the new facility will speed business.
Another significant milestone was merger with Calyst Inc., a Crispr gene editing operation.
To merge Cbus changed shares with a reverse split of one share for five with 19 million shares out now.
With fewer shares out Cbus can keep funding deficits by selling more shares.
About 10 per cent of shares are owned by insiders.
Revenues are just starting to come with $239,000 in the first six months this year.
Given the new facility, new trait developments should speed up and expand to other crops.
The next two to three years will determine if Cbus becomes a big player in changing agriculture. Acquisition by a major seed company is possible.
Current stock price hangs around $10.50 US with a high of $38.80 and low of $6.26.
Three analysts following the stock have targets from $21 to $39 over the next year.
This highly speculative stock is a candidate for investors’ watch lists.
CAUTION: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
