A tiny Saskatoon-based company has plans to radically alter the way agriculture controls pests and fungus-based diseases.
Mustgrow Biologics Corp. develops products from mustard seed for control of nematodes and a host of pests from fungus invasions to aphids.
The company isolates pest destroying glucosinolate in the seed and develops blends of products to kill pests. The pest destroying qualities of mustard seed have long been known, but little has been done to develop the products.
Currently, the U.S. Environmental Protection Agency has licensed one product with others in various stages of development.
Company literature points to European restrictions on chemical-based pest control options and the growing restrictions in the U.S. on synthetic chemical products for pest control.
Control of these pests increases yields substantially as well as producing better quality plants and food.
Valued by the market at a mere $14.5 million, Mustgrow has eyes on multi-billion-dollar markets in pest control.
The company estimates the market for its tobacco nematode and disease fumigation product at $4 billion globally.
This product has in licensing and offers an estimated $100 million cannabis market with a control for soil-borne disease. Another $100 million market exists in control of cannabis powdery mildew with an $856 million global market in fruit and vegetable soil fumigation.
Global markets that products in testing will serve include citrus greening, $10 billion; E coli, Salmonella and Listeria, $12 billion; and grain toxins, $15 billion.
The markets seem to be there. Getting the product used in the field is the next challenge.
The Canna PM powdery mildew product is in licensing with product launch planned for mid-2020 as well as the CannaMG pre-plant soil treatment product
TerraMG, a liquid technology for fruit and vegetables, is in licensing with planned product launch in Canada and the U.S. scheduled for early 2021.
Mustgrow has raised funds through share issues twice this year with more than $5 million put in the kitty. Insiders and management own 24 per cent of the 54 million fully diluted shares.
At a recent 58 cents, the shares have no real assets behind them other than the company patents and technology.
Shares in this company are extremely risky and speculative, given that other companies around the globe are developing similar products.
Long-term ownership could prove really lucrative, if Mustgrow succeeds.
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.
