Four years ago Bizworld examined a new company developing alternate products to synthetic crop chemicals and fertilizers.
MustGrow Biologics Inc. of Saskatoon has come a long ways since then with recognition of the mustard-based technology by four large chemical companies.
Partnerships have been signed with Bayer, Sumitomo, Janssen PMP and Nexus BioAg. Partnerships with these companies assist in getting through the red tape to field trials and register products.
The agreements indicate the synthetic chemical companies feel market pressure to adopt biological products, which are less hazardous, yet effective, and wanted by more and more food processors.
MustGrow extracts natural defence enzymes from mustard seed and develops products to condition the soil with nutrients, control pests and weeds and preserve food after harvest.
Field trials in the U.S.A. proved efficacy of bio-pesticide on nematodes in cotton and soybeans. Field trials are being performed in 37countries.
Janssen PMP, a division of Johnson and Johnson. is interested in the technology for food preservation.
Bayer Corp has exclusive rights to evaluate and adopt any of the three technologies for potatoes.
Nexus BioAg has rights to evaluate and adopt products for canola and pulse crops.
Annual global crop losses from pests and weeds is estimated at $1 trillion, with markets MustGrow is tackling estimated at $20 billion by 2030.
A soil pre-conditioner has received U.S. certification and is in state registration.
Products to control 10 fungal diseases, including club root, are in the registration process in multiple countries.
Bio-fertilizers and bio-herbicides are still in the formulation stage while partners are being sought for development of bulk food storage and shipping container protection.
Since starting up in 2014 MustGrow has lost and accumulated $20.85 million and expects to lose more on the path to commercial production
Partnerships help fund development of products and spread the risk.
The company believes it has enough cash to operate two years before seeking more capital from investors.
In all likelihood, Mustgrow will be subject of a takeover battle in future years as the partner companies seek to replace synthetic chemical applications with natural products.
Meanwhile losses will continue as the company extends field trials and obtains regulatory approval in numerous countries for commercial use.
For patient money willing to take a big risk, this stock could be a long term winner.
Priced around $1.15 by the stock market Mustgrow has improved from four years ago when the price was 58 cents.
Since 2019 the company has successfully conducted field trials and registered one product with six others in the pipeline.
The main asset remains the 84 patents, issued and pending.
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.
