The Multi-Billion Dollar Agri-Biotech Industry Is Ripe For Change And
MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF)
Has Created The Right Portfolio To Take On The Likes Of Bayer, Corteva & More
When you think of the biggest industries to invest in, what comes to mind? Technology, mining, oil, and gas, maybe even biotechnology? But what if I were to tell you that one industry spans across multiple sectors, is valued in the hundreds of billions of dollars cumulatively, and is likely something you’ve been in contact with every day of your life?
Agriculture has become one of the biggest industries in the world. But the woke generation has brought to light some significant information that has shaken the farming industry to its core. One of the biggest risks that the agriculture industry faces besides tariffs is crop yield decline. Things like mold, insects, and even diseases are a very real thing that could make or break a company’s margins.
Today we obviously have things like pesticides that protect crops but at what cost? More than ever, consumers are demanding that food and other products be sustainably sourced. This shift in awareness has helped to drive a new revolution in agriculture: Agri-Biotechnology. This is in light of major breakthroughs that have ended in massive settlements and shocking findings that should make you think about how food is being processed:
- “Cheerios, Nature Valley cereals contain Roundup ingredient, study finds”
- “California bans pesticide linked to brain damage in children”
- $10 Million Verdict
“Monsanto Pleads Guilty To Illegal Pesticide Use On Research Crop”
- $78 Million Verdict
“San Francisco Awards Groundskeeper For damages From Roundup Cancer Claims”
- $2 Billion Verdict
“Bayer’s stock falls after $2 billion verdict against Monsanto”
These are just a few of the countless instances where the industry fat cats have tried to hide the truth from the public. But the word is out and continues to broaden. Some farmers have started to take a different approach to grow crops without toxic chemicals. But the main problem isn’t getting farmers to use sustainable methods, it’s about getting them to do it affordably and at a large scale. Herein lies a massive opportunity for disruption.
MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF)
Is On The Verge Of Disrupting This Multi-Billion Dollar Industry In A Major Way
Rising demand for organic and sustainably sourced foods has created a brand new market. Unfortunately, the alternatives are slim. Either pesticide is avoided altogether, succumbing to whatever the earth can produce, or there are “organic” pesticides that are used with little to no efficacy resulting in reduced yields. In any case, there needs to be a better way.
According to a leading research firm, Zion Market Research, the organic food, and beverage market are expected to top $323 billion by 2024. Furthermore, according to the USDA, consumer demand for organically produced goods continues to show double-digit growth, providing market incentives for U.S. farmers across a broad range of products. This all boils down to a race to secure market share. While the Bayer’s and Corteva’s of the world fight losing battles in favor of harmful pesticides, their share prices continue to suffer the consequences.
Banana’s are a very important fruit and on that could become extinct due to a new strain of Fusarium also known as Panama disease. The global banana industry is a US$44 billion industry. There is the most consumed fruit in the US and it’s estimated that 400 million people in developing countries that depend on bananas for a substantial portion of their caloric intake.
It is estimated that the global loss due to Panama disease may have reached US$18.2 billion in today’s dollars. MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) on the verge of generating proof of concept data to show that they can solve this specific issue. The best part? The company is fully financed for the next 3 years. They theoretically do not need to raise any money. Therefore those looking at MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) at this critical phase before mass adoption and traction are gained, could be of the utmost importance.
Follow The Money
Right now, this mad dash for bio-pesticides could be creating the next wave of mergers and acquisitions. In this arena, the cash being thrown around is too big to ignore. Case in point, despite the shortcomings, Bayer’s purchase of Monsanto saw one of the biggest deals at the time: a $66 billion, all-cash buyout.
But this isn’t the only example of big buyouts in the space. What this has lead to is a gold rush for biopesticide companies with millions and even billions being spent to gain an edge:
- Bayer CropScience Buys Biological Pest Management Company AgraQuest for $425 million
- ChemChina Buys 40% Stake In Adama Agricultural Solutions For $1.4 Billion
- Terramera raises $45 million for its technology to reduce the use of chemicals in agriculture
- Vestaron Corp. secures $40 million investment for eco-friendly insecticides
…are you starting to get the picture? These deals didn’t happen decades ago, they’re happening right now. If you follow the money, where is it pointing to right now? The key is not only finding a company in this space but one that can remain sustainable on its own.
MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) has been exploring natural mechanisms stemming from the mustard seed to fight against some of the most damaging influencers on crops including nematodes, fusarium, botrytis, powdery mildew, verticillium, pythium, and other fungal diseases and pests.
The ability to be applied to agricultural production and having equal efficacy to synthetic chemicals is the key to being just another biopesticide company and becoming a true industry disruptor. Furthermore, with the company’s capital structure being one with a fully diluted outstanding share count of just under 55 million and 24% insider ownership, it could be on par with some of the strongest, top-tier growth companies in the capital markets, today.
The company owns a patented biopesticide derived from natural mustard seed and has already conducted over 100 independent trials. Furthermore, its first solution has been granted organic certification with an EPA approval already in place for its granule format. It has developed a proprietary method for isolating the plant’s glucosinolate and enzymes for trials and for commercial production. Not only that but MustGrow’s technology has also shown strong potential for “superior crop performance and enhancement of grower return on investment.”
MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) Portfolio Reaches Beyond Traditional Applications
MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) has further concentrated the active ingredient in a liquid format to maximize application and efficacy – a key milestone for growers seeking a ‘natural biological’ alternative to ‘chemistry-based’ products, some of which are dangerous to human health.
The advanced Liquid Formulation may be applied through standard drip or spray equipment, improving effectiveness, economics, functionality and performance features. This latest move now brings an even greater opportunity for a commercial-scale application.
MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF)’s technology refines mustard seeds to concentrate the plant’s natural organic compounds that form Allyl isothiocyanate. This essentially harnesses the plant’s natural defense system against pests and diseases. MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF)‘s novel product offers first-class performance, is 100% natural, and its bio-fertilizer product is listed for organic use by the Organic Materials Review Institute under specifications set by the USDA’s National Organic Program.
Another Big Industry To Disrupt: Cannabis
The real story here for MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) isn’t just about its product but the wide array of applications and novel product pipeline. Something to pay close attention to is that outside of just “foodstuffs,” there is a massive industry opportunity for biopesticides within industries like Tobacco and even cannabis.
Cannabis producers currently have limited, approved pest control options that work. Some producers have experienced the cost of u of lost crop due to powdery mildew. At $8 per gram, the value lost is estimated at $400-800/sf on just one cut, think of the value lost on one million square feet…
MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF)’s solution is a negligible cost to a grower – up to $0.03/gram, but protects against one of the biggest threats. According to the company, this is expected to be ready by the third quarter of this year.
The company’s cannabis portfolio includes:
Late last year, the company entered into a Supply and Private Label Agreement for the exclusive Canadian distribution of a streptomyces based biological product for the treatment of powdery mildew in Canada. Under the definitive binding Agreement, MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) will brand, market and distribute the product in Canada with the possibility to expand to markets beyond Canada. Streptomyces is the active ingredient in a previously available product which was once used by Canadian cannabis licensed cultivators for suppression of powdery mildew. Although not currently approved for use on cannabis, the product will be re-registered under a MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) private label trademark.
CannaMG® has demonstrated control of many soil-borne diseases and pests that affect cannabis production, including the following: Botrytis (gray mold, bud rot), Pythium, Rhizoctonia, Fusarium (root rot), Verticillium wilt, Phytophthora and Sclerotinia. The company tailored its natural mustard-derived granular bio-pesticide that has already been approved for use in fruits & vegetables as a soil treatment. MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF)’s granular product, the formula underlying CannaMG® is EPA-approved across all key U.S. states as a biofertilizer and biopesticide
The first third-party product that MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) has brought in under this strategy is Triangle Plant Science’s TP-1000. The company has exclusive distribution of the bio-fertility product TP-1000 in Canada and key registered cannabis markets globally. TP-1000 provides improved nutrient utilization in support of earlier growth and optimal flowering for plants, including cannabis. Third-party indoor trials have demonstrated excellent performance in hydroponic cannabis applications, with significant increases in yield (+4.6%), terpenes (+22.0%) and THC (+10.2%) levels.
Innovative Leadership That Works
No company can become successful without proper leadership and guidance. MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) has established an innovative team of industry veterans to lead the charge:
Corey Giasson, President, CEO & Director
With roughly 25 years of agriculture experience, Corey Giasson takes the helm of MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF). He was the previous Co-founder & CEO of Rallyemont Energy, which sold to Husky Energy and was also the previous Vice President, at Anglo Potash, which sold to BHP. His experience in the public and private sectors has to afford him the opportunity to become an integral part of corporate growth with a history of big buyouts.
Colin Bletsky, COO & Director
Colin Bletsky has 30 years of experience in agriculture as well. His previous experience as Vice President, BioAg at Novozymes gave him a unique opportunity to lead a global organization. He was responsible for the BioAg business worldwide. Like Mr. Giasson, Colin also holds a degree in Agriculture. During his time as Vice President of Novozymes BioAg, Colin was responsible for managing the company’s global ag business, ensuring sustainable growth for Novozymes and its partners.
Within his role, Colin set strategy and direction and managed partnering activities with internal and external stakeholders. He was also a member of the Monsanto and Novozymes Alliance board. From 2010 to 2014, Colin worked in Novozymes BioAg Business Development and Account Management, which spanned North America, South America, Australia, Europe, and Asia.
Todd Lahti, CFO
Todd Lahti has extensive experience evaluating and managing start-up companies in the biotechnology, agricultural and oil and gas sectors, working directly on financing transactions, mergers and acquisitions, corporate strategy, business development, technology transfer, and operations set up. Prior to this, he was the Treasurer of PartnerRe Ltd., one of the largest reinsurance companies in the world. There he participated in large international mergers and acquisitions and financing initiatives and had responsibilities in investment management, investor relations, capital management, and financial operations. He has closed over 50 mergers and acquisitions, financing and licensing transactions totaling over USD $2.4 billion. He is a Chartered Financial Analyst and a Chartered Professional Accountant.
Brad Munro, Chairman
Mr. Munro is the President and Chief Executive Officer of Bittercreek Capital Corporation, a private investment and advisory firm. Through Bittercreek Capital Corporation Mr. Munro was a contractor to GrowthWorks Capital WV Ltd. and its affiliates in the role of Vice President, Investments from May 2006 to August 2009. Prior thereto, Mr. Munro was an employee of Working Ventures Investment Services Inc. and its affiliates since September 1991.
Mr. Munro holds a Bachelor of Commerce degree from the University of Saskatchewan and has extensive experience in corporate finance and investment in the oil and natural gas and other industries. Mr. Munro was previously a director of Zedcor Energy Inc., which is listed on the TSX Venture Exchange and currently sits on the board of two private companies. Mr. Munro was a director of Tervita (or its predecessors) for eight years and was the lead director of the independent committee on the privatization of Tervita.
Matt Kowalski, Director
Matt has a tremendous amount of experience in the fruit and vegetable and biologics industries. He became president of Natural Industries, a family-founded business focused on biological pest control, from 2002-2012. Under his leadership, Natural Industries was awarded five EPA registrations; three bio fungicides, a bionematicide, and a bioinsecticide. Matt directly implemented the launch of Actinovate®, Natural Industries’ flagship product, and shepherded it to become one of the premiere bio fungicides in the fruit and vegetable market. In November 2012, Matt led the strategic sale of Natural Industries to Novozymes BioAg.
Brian Quigly, Director
Brian most recently spent 16 years at Altria Group, with seven of those years spent as president and CEO for U.S. Smokeless Tobacco and Nu-Mark, Altria’s innovation company. In his time at Altria, Brian spearheaded harm reduction strategies and worked to deliver results by creating change in the tobacco business in North America. Prior to Altria, Brian held branding and leadership roles with several companies, including Pinnacle Foods Corporation, and International Home Foods, which is now part of ConAgra, Inc.
Tom Flow, Director
Tom Flow was the former founder & Co-CEO of The Flowr Corporation as well as the previous Co-Founder of MedReleaf, which sold for $3.2B. He has been widely-recognized for cannabis cultivation thought leadership and expertise
Strong Case In Favor Of Taking Massive Market Share: Connecting The Dots
Beyond Meat and its $7bn market cap have created a buzz and caused smart money to come flocking into the food tech space. Another company, Burcon Nutrascience holds a proprietary food technology and has seen its share price rise from $0.30 to a high of $2 in 8 months.
There are also other major players coming into the-space including McCormick, Tyson Foods, and even Nestle which just announced a collaboration deal with Burcon mentioned previously. Not only this but the other side of the coin holds a true, organic solution to a major problem impacting one of the world’s hottest, emerging sectors: cannabis. MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) offers direct exposure to both worlds.
Those looking at MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) right now are seeing it on the verge of major market disruption. Given the current state of the industry, MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) stands to potentially benefit on several fronts. Not only has the company taken necessary steps to test and obtain approvals for its formulizations, but there is also well-suited leadership in place with decades of experience in all the right places.
If the company focuses on a tobacco application, its team has already been part of some of the biggest companies, IE Altria. If it’s in cannabis, its advisors and directors have been part of some of the biggest deals and made some of the most direct connections within the industry.
Furthermore, when it comes to organic foods and pest control, the COO, for example, was actually a member of the Monsanto and Novozymes Alliance board! When it comes to connecting all of the dots and determining if the company has potential, you be the judge. But right now there is a massive wave of money coming into this arena via strategic investments, mergers, and acquisitions.
The organic food market is already massive, but the push for an organic approach to every agricultural industry, including tobacco and cannabis is too big to ignore. The introduction of inexpensive and effective biopesticides from plant-based sources like mustard could have the potential to make this a company to watch now and in the future. If there was ever a “picks and shovels” company to watch, it would be one that essentially controls the supply of cannabis and food. The question now is: when will it be on your watch list?
5 Key Points on MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF)
1. The market for organic food biopesticides alone is projected to become a $323 billion market in less than 5 years.
3. The opportunity that additional industries present (IE. tobacco and cannabis) could offer a first-mover advantage for biopesticides.
5. The current share structure lends itself as a positive for anyone looking for a public company set up for strategic growth and competitiveness in the public sector.
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