Syngenta, Agrinos expand their cooperation
Agrinos, a green technology company committed to improving the productivity and sustainability of modern agriculture, announced it has expanded its existing commercial cooperation with Syngenta.
In April of this year, Agrinos announced it had entered into an initial pre-commercial test phase with Syngenta to explore the viability of different product combinations, to be marketed as new offerings by Syngenta. The trial results to date have supported a decision to expand the cooperation and initiate commercial discussions.
The board of directors of Agrinos also announced that Syngenta, through its subsidiary Syngenta Ventures Pte. Ltd., will invest $10 million (NOK 60,049,968 million) in Agrinos. The net proceeds of the private placement will be used for working capital related to increased market penetration and for general corporate purposes. Syngenta will be appointing an observer to the Board of Agrinos upon the completion of the transaction.
The expanded agreement will enable Syngenta to bring Agrinos products to market either in combination with existing Syngenta technologies or on a stand-alone basis starting in the first quarter of 2013.
Simultaneously, trials will continue within Europe, Middle East and Africa on further crops, and plans for new trials in the Asia Pacific and Americas regions will be developed. The results from these trials will form the basis for further commercial expansions within the cooperation.
Agrinos and Syngenta will furthermore initiate discussions on how to utilize the Agrinos technology either in combination with existing Syngenta technologies or on a standalone basis in formulated crop protection offerings. This will be a significant first step for Agrinos in moving into the crop protection market from a biological platform.
Agrinos' strategy is to commercialize its HYTTM technology in key agricultural regions across the world. The cooperation with Syngenta gives access to competence and experience, as well as to a fully developed sales and distribution network, which will give the company an opportunity to pursue the strategy with greater speed.
"I am very proud that Syngenta has expanded its cooperation with Agrinos as this move will accelerate our current market penetration and growth," said Agrinos Chief Executive Officer, Tom Einar Jensen.
"Syngenta has significant experience and the power to drive the commercialization of our technology further in all markets. We are looking forward to capitalizing on their extensive knowledge base and global network. The professionalism of the people we have engaged with in Syngenta and the diligent nature of our co-operation provides comfort for a long and mutually rewarding partnership."
"The agricultural market is changing due to resource constraints, environmental challenges and increasing demand for higher volumes of healthy food. Both Syngenta and Agrinos are at the forefront of those adapting to this macro picture, meeting growers needs with innovative and sustainable solutions," Jensen concluded.