EuroChem Group AG and Agrinos AS have jointly signed an equity investment and two strategic collaboration agreements.
As part of the equity investment agreement, EuroChem will subscribe for new ordinary shares in Agrinos in a private placement. Under the terms, EuroChem will acquire 22,250,000 new shares in Agrinos with an additional option to acquire up to 32,633,333 new shares over the next 24 months. The private placement with EuroChem is backed by Agrinos’ long-term strategic investors and existing shareholders, Manor Investment SA and Havfonn AS, who will respectively acquire 17,800,000 new shares and 4,450,000 new shares.
The proceeds from the investments will be used to support the execution of Agrinos’ business plan, which includes focused growth in core geographies and research and development efforts in second generation biological crop input products.
In addition, EuroChem and Agrinos have entered two multi-year strategic collaboration agreements. The first collaboration agreement is to market, distribute and sell Agrinos High Yield Technology (HYT) products by leveraging EuroChem’s distribution network and market expertise. The second agreement is for the research and development of new solutions for next generation fertilizer products by integrating biological and chemical crop nutrition technologies.
Rudolf von Plettenberg, Head of Premium Products & Development at EuroChem, commented: “These agreements come as we seek to further expand EuroChem’s product portfolio with innovative specialty products and environmentally friendly crop enhancing solutions. We see this partnership with Agrinos as a major milestone in EuroChem’s strategic development.”
D. Ry Wagner, CEO of Agrinos, added: “This partnership enables us to build upon complementary strengths and to capitalize on the synergies between Agrinos’ biological crop input products and EuroChem’s diverse portfolio of fertilizers. EuroChem’s investment in Agrinos provides an exciting new platform for collaboration on the research and development of next generation microbial and crop nutrition products, as well as expanded distribution opportunities. Combined, we anticipate the multiple benefits of this partnership will add value for our customers and partners through improved crop productivity and sustainability.”
Jean Baptiste Oldenhove, Managing Director of Manor, stated: “The transaction brings long term financial stability and a strong strategic partner to Agrinos and its stakeholders. It is another important transformational step for Agrinos and for plant nutrition in general. Sustainability of companies and business practices are central to Manor’s mission”.
The share issue and private placement are subject to approval by Agrinos shareholders at an extraordinary general meeting to be held on or about Feb. 5, 2016, (the “EGM”).