Plant Impact has confirmed Arysta LifeScience Corporation as the licensee for its BugOil technology.
Arysta is a Japan-based global crop protection company with annual revenues of $1.3bn. The 20 year licence agreement covers the manufacturing and sale of BugOil for mainstream agricultural activities. Plant Impact retains the rights for the garden and animal health markets.
BugOil is a benign insect and mite control agent derived from essential plant oil technology. Trials show that it controls mites and aphids at least as well as current insecticides but it is non-toxic. It is safe for bees and earthworms as well as animals. For example, Bayer’s Imidacloprid is only moderately safe for bees and Syngenta’s Abamectin ranks low in terms of safety to bees.
Arysta will help Plant Impact to secure registration of BugOil in additional countries around the world.
Plant Impact has not disclosed the amounts of any payments it will receive. There is a payment when the deal is signed and further payments when four regulatory and three sales milestones are achieved. On top of that there will be royalties on sales. Arysta had already lent £750,000 to Plant Impact – up to 50% of the royalty payments from any agreement can be offset against the interest and principal owed.
Some milestone payments are assumed in the forecast revenues of £3.5m for the year to March 2010 and £5m in the year to March 2011. Plant Impact is expected to move into profit in the year to March 2011.
Shares in Plant Impact rose 1.5p to 45.5p each, which values the crop yield improvement technology developer at £12.1m.
Plant Impact published its full year results in June last year.
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